When running Windows ME (as i am)all the files in the BGII root directory are changed to 'read only'. This does not allow the installer to complete the 'Baldur.ini' file install. After installing the game, i had to go to the BG root directory and unselect all 'read only' files, programs, ect. Once that is done, I went into the Baldur.ini file and inserted the following line directly under the [Program Options] heading: (2 for recommended, 3 for full install)
Installing=0
Install Type=2
After that, go to the line after....
Volume SFX=150 ...and enter the following:
[Alias]
HD0:=C:\Program Files\Black Isle\BGII - SoA\
CD1:=C:\Program Files\Black Isle\BGII - SoA\CD1\
CD2:=C:\Program Files\Black Isle\BGII - SoA\CD2\
CD3:=C:\Program Files\Black Isle\BGII - SoA\CD3\
CD4:=C:\Program Files\Black Isle\BGII - SoA\CD4\
With spaces after the dash. This worked great for me.