Installation instructions are as follows:
1) insert the ETK CD into your drive. Go to %driveletter%:\win95\bmw\etk and run setup.exe. This installs the Sysadmin part.
2) From the Sysadmn tool click EPC, then install. This loads the ETK/EPC stuff. This can take a while to install.
3) From the Sysadmin tool click TIS, then install. This loads the TIS. I believe you can load this onto your PC or have it so it will require the CD.
If you install in this order you shouldn't be prompted for a password.
FYI the newer ETKs don't seem to have as many e34 parts as the older versions. Some part numbers have changed since then, so if you as for a specific part the vendor might use another number. This has happened to me before, esp with bulbs.