This is the thing about SSI games, they're too picky on paths when games are installed.
According to this line in the buck.cfg file;
C:\DOOMSDAY\SAVE\
And the contents of the zip file, you need to directly unzip the game to c:\
As for the game, I love it. Needler guns are the absolute best, aside from rocket launchers.
Also I think my favorite part would be the bit where you investigate the ship that you then end up owning.
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Iolite Vaporizer