The installation script won't run directly - it complains that it needs Windows 95/98. So right mouse click on setup.exe on the CD, choose the compatibility tab, and set Windows 95 compatibility mode with 640x480 screen. Now double click on setup.exe and installation will run correctly.

Next, to make the game run, go to the directory where the game was installed on the hard disk, right mouse click on Betrayal.exe, choose the compatibility tab, and click Windows 95 compatibility, 640x480 screen, and disable visual themes. The game now runs correctly.