Thanks John and Ruthie for leading me to a solution. It was messy but I got there.
Entering the gateway screen was were the error was occurring:
1. Checked IMOCX.ocx did exist in my G:winsystem 2. Tried running Setup in DISK1 directory, but stops and gives the same error message “Setup failed to initialize”, Can’t load or register IMOCX.OCX 3. Saw a IMOCX.hlp file and the following is in there: “If you are using another installer or another development language you will need to make sure the appropriate files are copied over to the Windows/System directory on the users system. The ocx controls must also be registered in order that your application can run correctly. Most installers now support registering OCX controls or you can use the regsvr.exe or regsvr32.exe utilities to register the ocx files.
To use the regsvr utilities you must invoke the correct utility with the name of the ocx to be registered, for instance:
regsvr imocx.ocx (To register the 16 Bit ImageMan OCX )
regsvr32 imtwain3.ocx (To register the 32 bit Twain OCX )”
4. Found regsvr in my D:UFT (NOT windows) so had to RUN D:UDF
egsvr G:winsystemIMOCX.OCX The system acknowledges it can register file.
5. I ran FAM through gateway. Old error message is gone but now a new one! Can’t Load or Register CPMDLG16.OCX
6. As this file exists in c:WINSystem, I try the same approach to register this file, but it repeats the error message.
7. I try running setup, indisk1 directory but it stalls and repeats the error message. So I shutdown and reboot. I try running SETUP again, THIS TIME it runs through ok, I can see a number of the OCX files being copied.
8. I run FAM through the gateway and BINGO, FAM menu appears up and running.
SUMMARY. I have a Windows 98 system. The UFT software seems to have a problem installing the system 16-type files like, IMOCX.OCX. One needs to register the files manually, to unstick the system. Its as though the system thinks it correctly registered the file but it has not. Running setup from the disk1 directory must proceed all the way to the end for FAM to work. You do not have to upgrade (pay money) to 3.0 or 3.1!!.