Can’t find Precopy file

I just intalled windows 98 on a Pentium II Dell 300 mhz machine, and when i try to install any software or drivers it looks for C:windows\system\precopy and to insert my windows 98 CD. I insert the CD but it doesnt find this file and it wont let me skip the file the only thing I can do is Cancel, but this is a problem because I am not able to install anything. Can you help?