During installation:

When installing a Microsoft Visual Basic application on a computer running Microsoft Windows 95/98, you receive the following message:

Setup cannot continue because some system files are out of date on your
system. Click OK if you would like setup to update these files for you
now. You will need to restart Windows before you can run setup again.
Click cancel to exit setup without updating system files.

After Windows restarts and you begin the installation again, the error message appears again.

See Microsoft Knowledge base

During use:
See known bugs.