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Just wanted to address this issue, the above thread in which a problem was posted by linus has been locked. If you are installing HoMaM III from a Sold Out Software edition of the game, install from Heroes 3 -> _SETUP -> SETUP.EXE rather than directly from the disk or from the setup.exe file outside a folder. I think this is the way to do things for any Sold Out Software game release, so maybe it should be included in tips & tricks or something :)
I know I'm 7 months late, but I've also recently purchased a copy of Heroes 3 and 4 complete from Sold Out Software, unknowing that it can only be ran and installed on Windows 98,XP, and Vista, when I'm running on Windows 7 Home Premium. The disc spins for about a minute and then stops, nothing opening. Is there anyway to still install and run the game still?
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