For later 32-bit applications, running a 32-bit version of Windows 7 or Windows 10 inside a virtual machine provides complete backward compatibility for 16-bit installers without modifications.
: In the same Compatibility tab, set the operating system target to Windows XP (Service Pack 3) or Windows 98 / Windows Me to fix memory allocation discrepancies.
Are you trying to right now, or
Many original InstallShield 3 installers used a 16-bit "launcher" to start the 32-bit engine. Modern 64-bit Windows (10/11) cannot run 16-bit code.
ISZip32 -add myinstall.exe -f C:\MyApp\*.* -c best