Have you tried installing in a VM, or an older computer that's running slower than 300MHz? If that works out, then it's a simple matter of transferring the fpw 2.6 folder (e.g. c:\fpw) to the target computer.

One other thing to check -- in the CONFIG.NT (typically %windir%\system32\config.nt) check to see if you have a FILES line. If not, you might want to add something like:

FILES=100