Update on this:
The package I previously downloaded was NWABAPTRIAL70211_64_GW204 which led to all the questions I've posted above.
I uninstalled that and again downloaded NWABAPTRIAL70206_64 ( the 2 pkgs ). The installation of this new package was smooth and I'm now in.
On Win 8 the only problem is I always get a Runtime Error "OS release is not supported with this kernel (720)" when login. I simply click 'Back' and it directs me to Start SAP Easy Access then everything looks normal.
Regards,
XM