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Make sure you have disk space.
Try another destination folder.
how would i know what folder to create?
Are you the admin user on the computer? The .exe file needs admin privileges for it to work. Otherwise, when it tries to extract, it won't have the right permissions to create the temp folder.
Good point about being admin. In addition, since you are on Win 7, you should probably be running the setup.exe as 'elevated administrator'. (Run as...)