Topologilinux is a strange beast. You have to run the installation program in Windows first. This will build file systems that appear to be files to Windows.
Once that is complete, then you have to reboot with the CD in the drive (your BIOS has to support booting from the CD, but most Pentium II and better machines will do this). When you boot from the CD, you will get a LILO boot prompt where you can type "install" to install the software.
For my money, I'd rather run KNOPPIX than Topologilinux. You just need to have a FAT32 disk to save the configuration to. It can be an inexpensive USB thumbdrive, so you can carry your config around with you.
pansophic