The installer is completely self contained inside INSTALL.EXE. It esentially unpacks the PAK and RAW files to the install drive. I spent some time reverse engineering INSTALL.EXE to see how it worked. The files F1.RAW and F2.RAW are not compressed while the F1.PAK and F2.PAK are compressed. The compression seems to be based on LZ77/LZW. The installer seems to be hardcoded with information about the offsets of and contents of each PAK/RAW file.
The F1.PAK file contains in this order:
0: disk1 1: disk3 2: disk4 3: fod.exe 4: keh.exe 5: globals 6: hdspct 7: weapons 8: packets 9: archtype A: services B: font C: borders D: disk2 E: kmap
The F1.RAW file contains in this order:
0: tiles 1: gani 2: tpict 3: kscr 4: kani 5: kpict 6: disk3 7: fpict 8: epict 9: disk4 A: dpict
The F2.PAK file contains the following files:
0: fmap 1: dmap
The F2.RAW file contains the following files:
0: fscr 1: fani 2: dani 3: dscr