First of all, if you install to C:\Program Files, you might run into problems if you use Windows Vista or 7, due to the user account control which blocks a lot of programs that are installed to C:\Program Files, as well as to solve the "I can't find my screenshots"-problem. Really, a lot of problems are solved if you install the game to a different folder. Besides, as you might have found out already, you can always change the path where it is installed to.
As for the "Audio System Init Fail" error: Are your sound drivers installed? If yes, go to your RO folder, and change the sound settings in setup.exe. Try with several settings, until it works.