When you double click the installer use ‘Avancar’ til you get to the path directory and choose where you like, then ‘Avancar’ again then ‘Comecar’. The game will install to the dierctory, then click ‘Avancar’ then ‘Sair’. Now go to the directory you installed it in and double click the ‘setup’ DOS file to install the sound (this also lets you change the resolution in the game as well). Also there’s no audio for the radio stations on this but if you want music playing when in the car create a folder called ‘mp3′ (without the ‘ ‘)in the GTA directory and stick mp3′s in it (dont put them in sub-folders, only in this one) and you have your own music while you drive.
Also if you’re using a controller (which i’d recommend, plus you get auto aim) switch to ‘Classic’ in the controller options, otherwise its a bit wonky. Using the right stick to look around is backwards but you can probably change that in the redifine section. You can download it here and here!!! Enjoy 
Note: You need the two files to extract it!!!
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[...] unknown wrote an interesting post today onGrand Theft Auto III | in-Tech RevolutionHere’s a quick excerptGrand Theft Auto III. Posted on Nov 01, 2008 under in-tech PC games |. When you double click the installer use ‘Avancar’ til you get to the path directory and choose where you like, then ‘Avancar’ again then ‘Comecar’. … [...]