DMF Formatted Disks: Second Disk Installation Fails

I am trying to install Word 6.0 for Windows on my DOS Compatible Macintosh. The first disk installs correctly but then fails on the second disk. I have gotten a new copy of the software but this copy does not read from drive A, I get a message saying, "System Error". When I try to cancel the installation, I get a message saying the compressed file can't be decompressed, and it may be corrupted.

I am also unable to mount the disks with PC Exchange.
Microsoft uses a disk format, DMF (Distributed Media Format) that lets them ship their software on a small number of disks by using a 1.6 MB floppy disk format. The current PC Compatible (360K/720K/1.4MB) or Apple (400K/800K/1.4MB) floppy drives cannot read this type of format.

The disk set for Microsoft Word 6.0 for Windows contains one 1.4 MB disk with an installer program and other 1.6 MB formatted disks. Although the 1.6 MB disks cannot normally be read by the floppy drive, the installer modifies the hardware-level floppy driver and DOS BIOS calls, which enables the PC to read the new format.

The Microsoft DMF installer program may be incompatible with the Macintosh DOS Compatible computers, as well as the Insignia SoftWindows product. The installer attempts to modify the DOS BIOS and hardware-level floppy driver, which can not be done in these hardware emulation implementations.

There is a Fix
PC Exchange 2.0.7 lets DMF formatted disks be used with Macintosh DOS Compatible computers. PC Exchange 2.0.7 available with the DOS Compatibility 1.5 Software Update for Power Macintosh/Performa 6100 DOS Compatible, Macintosh Performa 630, 640CD DOS Compatible, and Macintosh LC 630 DOS Compatible computers. The DOS Compatibility 1.5 update is available at Apple Computer's Software Updates locations online, or a disk set can be mailed for a shipping and handling charge by contacting 1-800-SOS-APPL (1-800-767-2775).

The DOS Compatibility 1.5 Software Update is not supported on the Quadra or Centris 610 DOS Compatible computers.

This article can help you locate the software update mentioned here:
Published Date: Feb 19, 2012