Its looking for *.inf files. Use the "have disk" option and point windows directly to the ATI installation file.
I couldn't find any .inf files in what I downloaded but I directed it to the cd that came with the video card (rather than the driver I downloaded) and it found something and began to install it but then the screen went into standby mode and wouldn't come back. I had to restart, tried to repeat the process and it went straight into standby mode, without begining to install.
