Delphi re-installation problem

My client has a  Win95 PC.  Up to today it had the BDE (32 bit) and
RS_Runtime installed. I needed to modify some of the data files so
decided  to install DBDesktop. Using the Delphi Developer CDROM I ran
Delphi Setup.  

After Install Shield initializes, it shows the ReadMe file and then goes
into Delphi Setup initialization. Halfway through that it gives me this
warning message

"String variable is not large enough for string. Check
the string declarations.  Error 401"

Setup then continues and allows me to do a custom installation, where I
choose DBD.  I am also forced to choose BDE (although it is already
installed).  Continue ...

At the end I get the warning that it was not able to configure BDE.
Neither DBD or my delphi applications will run, saying "unable to
initialize BDE".

I am desparate for some lead on this, as the client's application is
unable to run.  Any help much appreciated.

Bruce Meier