Windows 98 and Backpack-Style CD-ROM Drives
Under Windows 98, you cannot use a Backpack drive to install device drivers. The process will fail after you have been asked to locate the driver information file for your new hardware. Instead of installing, an error dialog pops up that says "The selected directory does not contain information about your hardware."
There's a workaround: copy the driver files onto your hard drive before installing the driver, and select the hard-drive location when prompted by the Add New Hardware wizard.
This applies to device drivers in general... not just Acroloop's drivers.