MS ackowledges that the current install problems are their bug and they have stated that it will be addressed in a future beta (it should finally be fixed in the already available Win2k, though!). All InstallShield programs that use password protected CABs will probably have problems. However, here's a workaround how to bring Delphi 4 to work under Windows 2000:
install Delphi 4 on Windows 2000 and ignore all error messages
copy the runtime image directly from the CD
go to the command line and change to
Common Files\Borland\Shared\Debugger
From there, type regsvr32 -u bordbk40.dll
and then regsvr32 bordbk40.dll
..this should do the trick!