If what CSCFWAdmin says does not work, yes you can copy the I386 to the C Drive. However you will still need to be able to boot up if you are using a brand new or reformatted hard drive. Also make sure you CD-ROM is a bootable type, some are not bootable if they are an older model. If you plan on copying I386 to C:, then you need to boot up with a Floppy Disk like a Win 98 Boot Disk. Or any boot disk that can give you CD-ROM Support and make sure to copy smartdrv.exe to that, it will speed this up.
When at C:>
type cd\i386
not type WINNT
This will prompt you to copy the file to your hard drive and you can install from there.
Good Luck
Narineh, MCSE, MCP, Network+