MacTerminal 3.0: Installation with System 7.0.1

I attempted to install MacTerminal 3.0 on a Macintosh II running System
7.0.1. This was a version I received about a year ago, that didn't mention
System 7. All examples and instructions were keyed to System 6.

During the first floppy disk installation procedure, it flagged the
Communications Toolbox as already existing on the target disk. But when
installing the second floppy, it complained because it didn't find a
Communications Toolbox folder where it expected to find or put various
tools unique to MacTerminal 3.0.

I created a Communications Toolbox folder in my System Folder, and manually
copied the tools from the floppy disk. This didn't work when I tried to
run the application -- it simply said it couldn't find any tools.

How do I resolve this problem?

Here's how to install MacTerminal 3.0 on System 7.x:

The Installer on Disk 1 of the MacTerminal 3.0 package installs the
Macintosh Communications Toolbox. Since the Macintosh Communications
Toolbox is built into System 7.x, you don't need to run the Installer.

1) Remove the Communications folder you created manually. In System 7.x, the
Communications Tools reside in the Extensions folder in the System Folder.
Drag these Tools from Disk 2 directly to the Extensions folder, or to a
closed System Folder, and System 7.x will put the Tools in the Extensions
folder.

2) Create a new folder called MacTerminal 3.0 on your hard disk, and
drag the MacTerminal application and sample session documents from the
MacTerminal disk to this new folder.