Installing under your desktop should work I think, but it may slow down your computer.
Yes, you install EB into the very same folder that you installed RTW in. So in both installers, you should write C:\Documents and Settings\Rasa.SENSEI-A6A77749\Desktop\rome toal war as the installation folder.
Make sure to install the Trivial Script, it will make it easier to run the game.
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