I use the free edition of this version of InstallShield as well. The installshield program creates a setup.exe and then *.cab files that are placed in subfolders like \disk1 \disk2... To distribute your program, you have to specify in the media builder that you want to fit the program for diskettes of size say 1.44 MB or 2.0 MB etc.,etc. Then build installshield and send the contents of disk1 to an unformatted diskette and contents of disk2 to a different unformated diskette.

If you are having problems finding the specific location of the media that you built, try clicking the right mouse button on the media build wizard and then click 'send media to a fixed folder' and then specify the folder that you want the built program and all subfolders (disk1, disk2...) to be placed.

I hope this helps.