And doing a little research before posting a reply on a help request will prevent you from saying something useless. This has nothing to do with Direct X nor the state and age of the hardware. Lets not force someone to spend hundreds of bucks on something that isn't broken.
Several Lucasarts games have this problem. The .cab file can't be installed because there is a conflict during the extraction of the compressed file directly from the dvd/cd.
Copy all the files from the disc manually to a folder on your pc, and run the setup.exe from there. If you can't copy it, either get it off someone else's disc or off a leeched version.