The following comes directly from InstallShield support:
Symptoms
When an InstallShield setup is launched, the following error occurs:
Error -1607: Unable to install InstallShield Scripting RuntimeCause
This error can be caused for a number of reasons, many of which are machine-specific. Some known causes for this error are as follows:
On Windows XP, there is a known issue with the Microsoft Windows Installer Service that affects all MSI-based setups. This error results when an MSI-based setup is run from a virtual drive created via the 'subst' command.
Registry entries point to drive(s) that have been created with the "subst" command.
The file IDriver.exe is not registered properly.
Permissions on the <WINDOWSFOLDER>\Installer folder are insufficient.
An older version of InstallShield Developer is being used.
The file msiexec.exe is not registered properly.
An older version of the MSI engine has been installed from a network drive that is no longer available.
There are insufficient privileges in Windows.
Another instance of the file "msiexec.exe" is running.
Another MSI-based setup is running simultaneously.
The default value of the Windows Documents & Settings folder has been changed to a different drive letter that doesn't exist.
The main drive letter (usually C: ) does not have a System account on it.
Resolution
The following options have been known to resolve this error message in the majority of cases. One or more of these options may be needed to resolve the error message.
Reinstall the InstallScript engine by running the ISScript.msi file located in the following location:<InstallShield Installation Location>\Redist\Language Independent\i386
Upgrade to the latest version of InstallShield, as this error has been known to occur more frequently in older versions.
If running on a Windows XP machine, make sure the setup is not running from a virtual drive created via the 'subst' command.
Make sure all user shell mappings do not reference drives that have been created with the "subst" command.
Properly register the file IDriver.exe by using the following command line: <PROGRAMFILES>\Common Files\InstallShield\Driver\<version>\Intel 32\IDriver.exe /REGSERVER
This command line can be entered in the Windows Start | Run dialog, after replacing <PROGRAMFILES> with the location of the Program Files directory.
Note: <version> would be replaced with the specific version of InstallShield being used. For example, if using InstallShield X, the path would be <ProgramFiles>\Common Files\InstallShield\Driver\10\Intel 32\IDriver.exe /REGSERVER.
Follow these steps to set the proper permissions to the <WINDOWSFOLDER>\Installer folder:
Locate the folder <WINDOWSFOLDER>\Installer. (For example, on Windows 2000, this folder would be C:\WINNT\Installer.) *Note: This folder is hidden by default in the Windows environment. Therefore, it may be necessary to enter this path directly in the Windows Start | Run dialog to access this folder.
Right-click the Installer folder, and choose Properties.
Select the Security tab.
Make sure the system, as well as the specific user, has full control of this folder.
Properly register the file msiexec.exe by using the following command line:<WINDOWSFOLDER>\System32\msiexec.exe /REGSERVER This command line can be entered in the Windows Start | Run dialog, after replacing <WINDOWSFOLDER>with the location of the Windows folder.
After registering the file msiexec.exe manually, open the Microsoft Windows Event Viewer if the error still occurs. This is accessible in the Windows Control Panel, under Administrative Tools on Windows 2000 machines. For other operating systems, search the Windows Help for the term Event Viewer to locate this utility. If the registration of the file msiexec.exe failed, it may appear in this viewer. Double-click the error to read details on why it failed. If it failed due to the MSI engine originally being installed from a network location that no longer exists, map this drive letter (available in the Tools pull-down menu of Windows Explorer) on this machine and run the setup again to resolve this behavior.
Make sure you have full administrative permissions for this Windows machine. If you are unfamiliar with this terminology, please contact your systems administrator for details. Make sure no other MSI-based installations are running simultaneously.
Make sure the default location for the Windows Documents & Settings folder is being used. In some rare cases, if this location is changed to a different drive letter that doesn't exist, this error may occur.
The Default Impersonation Level must be set to Identify. Verify that the DCOM Configuration Properties Defaults Impersonation Level is set correctly. Users that have their Default Impersonation Level set to Anonymous experience this error message. To change the impersonation level, follow these steps:
Click on the Start button.
Select Run.
Enter DCOMCNFG then click OK.
Select NO for any Warning screens that are presented.
The "Distributed COM Configuration Properties" screen is displayed.
Select the Default Properties tab.
The "Defaults Impersonation Level" field must be set to "Identify".
Select Apply then OK.
Reinstall the Windows operating system, as this error has been known to occur in corrupted environments.
In the "Default Security" tab of the DCOM Configuration Properties (as discussed in Resolution #10), create a System account for the main drive letter (usually C: ) and give it full control.