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When you run that installer it creates some temp files in the users Temp directory:
C:\Documents and Settings\firstname secondname\Local Settings\Temp
One of these files is called:
and thats why HIPS is kicking in and so the installer is stopping. You need to either creat an exclusion or temporarily disable HIPS for the install.
Turn off the double file extension sig, it is worthless and more trouble than it is worth.
Wonder if you could just exclude files ending in .tmp and leave the rest?