GTA3 - Install Problem!

I am trying to get GTA3 installed onto my other pc to see how it runs etc. Its an AMD Duron 900Mhz, ECS K7S5A mobo, 256MB Crucial ram, Voodoo3, SB Live 1024, etc running on a new install of Win2k Pro with SP2 It all runs quite well and its really fast. I put the GTA3 cd in, let it auto-run, click on OK then it stops with this error msg:

The InstallShield engine (iKernel.exe) could not be installed. (0x10000)

Anyone help me?

You sure you have the latest drivers for your hardware, especially your videocard?

Yes m8, im pretty damn sure. I went to the MS Update page and grabbed a load up updates as well. Installed DX8.1 while I was there. Its really weird tbh :confused: