You do not need to install it, it is already fully installed in the archive.
Second to that, you need to run SC2000.EXE and not SC2000.pif. Why there is a .pif file is way beyond me since those files works only for individual Windows machine and will never work unless you happen to unzip the game at the same directory it been created on the other machine.
I used VDMSound to make it work and I had no problems other than a slow mouse. DOSBox would probably solve that.
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