A family of Microsoft relational database management systems designed for ease of use.
First of all Windows 7 will not let you let you do much to C:\ unless you change setting for the TrustedInstaller, so I would suggest creating a new folder under My Documents (or Documents as Windows 7 calls it) and then using s new file path.
As for the missing DAO library, perhaps you need to select custom and run everything from your hard drive. Running from the CD will not load all files. But it should be on the CD. You could try a Repair and see if that fixes the issue. Can you post the code you are using here? There might be something there that will show what is happening.