The problem you are having is the game is too old for Windows 7. Period. There are a great many games that came out in the late 90's that don't do well on modern operating systems (Vista, Windows 7)
If you look at the system spec, XP isn't even mentioned as an OS for that game!
Please review the system requirements before downloading.
- Multimedia PC with Pentium 166MHz or higher processor.
- Microsoft® Windows® 95, Windows 98, Windows NT® 4.0 with Service Pack 5 operating system.
- 32 MB of RAM.
- DirectX 6.1 or later.
- 90 MB of hard disk space; additional 100 MB of hard disk space for swap file.
- Super VGA monitor supporting 1024x768 resolution.
- Local bus video card that supports 1024x768, 256-color resolution and 2 MB of VRAM.
- Microsoft Mouse or compatible pointing device.
- 28.8Kbps modem (or higher recommended) for Internet* or head-to-head play.
- Audio board with speakers or headphones.
- To access the MSN Gaming Zone you need Internet Explorer 3.02 or later software or Netscape Communicator 4.0 or later.
Source - Microsoft Age of Empires II: Age of Kings
And the fact thet's it's listing DirectX 6.1 says alot. I'm also betting that the game uses a 16-bit installer which neither Vista or Windows 7 support - 64-bit versions of Windows do not support 16-bit components, 16-bit processes, or 16-bit applications
Bottom line... That game isn't going to install, or run under Window 7.