Try using the InstMsiA.exe download from the Philscomputerlab website
http://www.philscomputerlab.com/daemon-tools-windows-98.html

Xeo wrote:

So when I go to install Daemon Tools I get the following error: […]
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So when I go to install Daemon Tools I get the following error:

Windows Installer was not found or is outdated.
Would you like to download and install Windows Installer 2.0?

If I click yes, it downloads InstMsiA.exe and when I try to run the file it says "InstMsiA.exe is not a valid Win32 application."

My guess is it either downloaded the wrong version (maybe a newer version that doesn't work with Windows 98) or something went wrong with the download. So try installing the version Phil used before installing Daemon-Tools.

skitters wrote:

Try using the InstMsiA.exe download from the Philscomputerlab website http://www.philscomputerlab.com/daemon-tools-windows-98.ht […]
Show full quote

Try using the InstMsiA.exe download from the Philscomputerlab website
http://www.philscomputerlab.com/daemon-tools-windows-98.html

Xeo wrote:

So when I go to install Daemon Tools I get the following error: […]
Show full quote

So when I go to install Daemon Tools I get the following error:

Windows Installer was not found or is outdated.
Would you like to download and install Windows Installer 2.0?

If I click yes, it downloads InstMsiA.exe and when I try to run the file it says "InstMsiA.exe is not a valid Win32 application."

My guess is it either downloaded the wrong version (maybe a newer version that doesn't work with Windows 98) or something went wrong with the download. So try installing the version Phil used before installing Daemon-Tools.

I think that it downloads Microsoft 404 site like it did to me. And yes try installing the version from Phil! https://www.philscomputerlab.com/daemon-tools … windows-98.html Link if you need.

Why not just install Daemon in your host system and mount the emulated drives in your guest system?

A modern-enough DaemonTools required is potentially undesirable.