I guess you have Win95.
On the online manual (http://www.daemon-tools.com/daemon.htm
) you can read :
"Windows 95 is supported since version 1.03.
But notice that you need at least Windows 95B with installed USB Supplement and at least Internet Explorer 4.x."
USB supplement is just a piece of program added in Windows since W95 OS-R2. There is a link when you click the phrase "USB Supplement" to download it.
Doing otherwise might lead you to some unexpected behaviours.