If it is Windows 7 64-bit, you will have difficulty running any 16-bit program without an emulator. WOW16 (Windows on Windows 16-bit) was removed from 64-bit systems because they are incompatible - once a CPU is in Long Mode (64-bit mode), the only other mode that may be entered is Compatibility Mode (32-bit). It is impossible to enter 16-bit Protected or Real Mode without resetting the CPU (well, it's possible, but painful and would likely cause Windows to need to restart. You would also end up having to disable interrupts and cause the system to become monotasking).
You could try using VirtualBox (although use XP as 9x/ME run TERRIBLY on it) or another emulator. You have a newer system, likely with an ICH9 chipset, which will cause 9x to crash if you try to run it bare metal.