Indeed, this is a compatibity issue between Windows 7 and MID.
To resolve this; right-click the Setup.exe > select the Compatibility tab > check "Run this Program in Compatibility mode..." > select OS "Windows XP SP3" > check "Run as Administrator" in the Privilege level
double-click Setup.exe to launch the installation of MID
Unfortunately, your suggested workaround is still not working on a 64-bit Windows 7 client!
I hope this issue will be solved in the next version the Installation Designer. Has anyone an idea when we can expect a new release?
There are a few outstanding issues with MID 8.7 regarding Win 7 compatability (eg, a MID created package will not deploy from EPO to a Win 7 box) etc.
Not sure of a date, but surely a new version is due out soon ... the bug above is quite a serious one.
Ah yes! I should have mentioned that the workaround works only on 32bit systems, eg. Windows 7 x32 and Windows 2008 x32 - and that is the highest level of OS that it will work on.