And read this:
http://www.abandonia.com/vbullet/showthread.php?t=14406
Especially the part that's about mounting a virtual C:
Those should be your first lines, then your CD mount.
To get your game to install:
mount c c:\oldgames
mount d e:\ -t cdrom
d:
install
C:\oldgames must exist, of course.
If you have a partitioned HD (as your cd seems to be E:) and would rather have a virtual drive on D: it will be:
mount c d:\olgames