I got this error when trying to install the Field Scoring component of the BEST scoring software. After much angst and reading things on Google about how it's related to an incorrect directory inside the (InstallShield created) setup file, I finally stumbled upon a solution:
Earlier in the day I had renamed the Administrator account of the computer, and also changed its password (while logged in as Administrator). I had not logged off between then and installing the software. Logging off and then logging back on fixed the problem.