Hi I own the Original Disc version of IWD1 and I have had no problem installing it on all OS yet on windows 8 the installer runs and then makes itself a background process with no way of making itself a Foreground Process. and so sits there doing nothing I have tried compatibility mode and running as administrator yet nothing seems to work HELP!

Make sure to have DirectX9 installed as well, because Windows 8 comes with DirectX 11 which misses some older components. To complete your system install this:
http://www.microsoft.com/en-us/download/details.aspx?id=8109
Maybe that'll solve the issue.

Running the game with compatibility mode and admin rights is still a good idea.

It was a good idea but sadly no it hasn't fixed the problem and I cant play the game as it wont install if you have any other recommendations I would gladly take them I will continue to attempt to fix it on my own and hope for the best.

edit: I have just discovered that the expansion pack CD runs its installer but cant install (as the original game isn't there) and that I have BG1 BG2:TOB and IWD2 and this just fails to install also I have added a screenshot to show the Setup 32bit launcher being described as a background process by Task manager( the top one)

Is the CD still okay? Have you tried copying it completely to a folder on your hard drive and running the installer from there?
Keep running the installer in compatibility mode and as administrator.

I have 2 CDs one that is the original one and I also owned the IWD2 Collectors Edition (how I got the Heart Of Winter Expansion Pack) which came with another copy (handy if a friend comes round) and I have tried with both CDs repeat ably but I will try what you suggested.

If you've got two CD editions, it's rather unlikely, that both are corrupt. The main problem might be Windows 8 as it hasn't got a Windows XP compatibility mode anymore. A laborious workaround would be setting up a virtual machine with Windows XP. The Professional version of Windows 8 includes Microsoft's virtualization software Hyper-V. Alternatives are VirtualBox and VMware.

Another thing you could try is booting Windows 8 in Safe Mode and then installing the game (as Administrator).
- press Win+R to get the Run dialog
- type “msconfig” (without the quotes) and launch the utility
- In the Boot tab, check Safe boot (Minimal)
- Hit Ok
When you reboot your machine afterwards, it will always start up in Safe Mode.
Just uncheck Safe Mode later on, to activate normal boot again.

If you have got a second PC you can also try installing it there and copying the game's whole folder onto a thumb drive to transfer it to your current PC.