Carl,
Thanks for responding.
The game is Knights of the Old Republic. One of the responses I got from another site suggested I transfer the files from the discs to a separate file on the computer. My photos are too large to include so I'll try to explain this in detail.
When I start loading the game, and I get to disk 4 it states, 'Setup Needs the next disk' 'Please insert disk 4 that contains the file data5.cab. After I answer whether I want a desk icon or not, it then states 'Setup needs the next disk' 'Please enter disk 4' which is different than the first request to insert disk 4. No matter what I do, it will not get past this request. I tried your suggestion to reinsert disk 1, but nothing happened. I would like to mention, when I was transferring the information from disk 4 to a separate file on my computer, it didn't want to transfer the files. I eventually had to do the files one at a time. When it came to data5, it took a while to get that one transferred. Since data5 had such a hard time transferring, does this mean the disk is bad and won't finish the process? Or could it be an installer issue? Or a window 7 issue?
The other suggestions I've had was to run this as administrator, which I did but got the same result. I'm already set up for Windows xp service pack 3. The next step I plan on taking is to try to update my InstallShield. I don't have this computer set up for the internet since its windows 7, so I'll need to use my laptop to transfer the file via USB.