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I know this is an old thred but I found it through google so I thought I would ad the fix for anyone else:

I followed the instructions on this site:
Installing XIII in Windows Vista -

Installing XIII in Windows Vista
This is how I managed to install XIII on Windows Vista (64 bit). The problem I had was that the setup program started to uninstall XIII after I put in CD 2 (asking Do you want to keep your saved games?). This most likely has to do with the copy protection which the game uses. Patch 1.3 removes CD checks from the game (but not from the installer, of course).

1. Create a directory XIII on your hard drive. Copy each of the CD's into it's own directory within the XIII directory so that the contents of CD1 is in XIII\CD1.
2. Open up the task manager (press Ctrl+Alt+Del), it will be used later. Choose the tab Processes.
3. Right-click on the file setup.exe in the directory XIII\CD1 and choose Properties. Select the tab Compatibility, check the box to run the program in compatibility mode and from the drop-down box, choose to run the program in compatibility mode for Windows 98/ME.
4. Run setup.exe (which you just set the compatibility mode for). Keep an eye on the process setup.exe (alternatively named setup.exe *32 or similar) in the task manager. If a lot of these processes pop up, rename setup.exe to something else temporarily (keep the processes running in the meantime), that should stop the process from respawning.
5. The setup will now launch and you can proceed as normal.
6. If the setup program asks for the location of setup.exe, rename the file which you renamed in step 4 back to setup.exe and continue.
7. The setup will now proceed normally.
8. When the installation is complete, you can remove the XIII folder, including the folders to which you copied the contents of the CD's to, from your hard drive.
9. Install any patches (you will probably at least want to install the 1.3 patch).
10. Play!

If the setup still won't work, try closing down any programs which you have running and then try again. Alternatively, if you have any CD drive emulators, such as Daemon Tools or Alcohol 52%, you may want to temporarily uninstall these.

The first couple of times I tried it, it wasn't working but I found that when I was renaming the setup.exe file I called it setupx.exe to stop setup32.exe respawning multiple times in task manager and the installer not opening up (after you rename the setup.exe it will open up) I had to go in and change the compatibility options as it was turning them off after the file was renamed after that it worked perfectly

Hope that all makes sense :)

You can also get the latest official and unofficial patches from here:
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