Solution: We think, that it is the problem of temporary files or directories
of the setup program.
The standard "TEMP" environment variable is used as path to directory for
ALL Installation temporary files (including DLLs/Programs).
InstallShield requires at least the 500K free disk space into the
check the existence of the "TEMP" environment variable;
check the existence of the "TEMP"-pointed directory;
anyhow run "setup.exe", wait for the "Setup Intialization Error" message (!
do not press the "OK" button !) and look into the "TEMP"-pointed directory.
One non-empty subdirectory (with "_ISTMP0.DIR" name) a few files
("_ins0166._mp","_ins0366._mp"...) must be.
Please clean up the "TEMP" directory, and repeat the setup.
Please also close any applications that are running..