Welcome to the forum! Since this is a tech problem, I moved it into the hints / tech forum for you.
First of all - what operating system are you using? If it's XP, have you tried putting the game in compatibility mode?
Is this the DOS version of KQ7, or the Windows version?
Please also tell us what you've done up until this point. Have you installed the game but are unable to launch it? Or do you get this message when you try to install? What did you do just before the message appeared?
emily