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I've seen this error before on vista. In the past the users saw this message when they didn't have write permission on the directory they were installing to. Even with administrator privileges, they still need write permissions.
A quick test is to:
login as the user you are installing as.
cd to the directory you are installing into.
touch foo // to see if you can write to the dir.
Thanks for that!
It is indeed thanks to Vista it couldn't create the directory under "program files", I couldn't do it from a command prompt Thanks again windows!!
Installed now Cheers!