Try this solution. I apply it and it works...
The following is the solution received from InstallShield Support.
The information below shows how to fix this problem by modifying this
system, this was determined by trial and error and is not documented
by MS and involves updating the registry. Also, please note that this
is not the only possible cause of this type of error, just the error
that was occurring in this specific case.
To fix this problem open the "Regedt32.exe" registry editor (This is
the NT 3.51 style editor) go to the registry under:
HKLM\\Software\Microsoft\Windows\Current Version\Explorer\Shell
Folders
notice that the value of "Common Desktop" under this key is:
C:\WINNT\All Users\Desktop
this folder does not exist. However, changing this value directly will
have NO EFFECT.
Next locate the key "User Shell Folders" under the same key as above.
Add the following value as type REGSZ_EXPAND:
Common Desktop = %SystemRoot%\Profiles\All Users\Desktop
Note that this value MUST be of type REGSZ_EXPAND, this is why it is
necessary to use the NT 3.51 style registry editor.
Then restart Windows and verify that the appropriate value under
"Shell Folders" has been changed to a valid folder. 6.1x setups should
then work properly.
Note that this could also be a problem if any of the following values
under "User Shell Folders" are missing or invalid.:
Common Start Menu, Common Startup, Common Desktop, Common Programs
This is the registry entry I had to add to my registry:
HKLM\\Software\Microsoft\Windows\Current Version\Explorer\User Shell
Folders\Common Start Menu
Type: REG_EXPAND_SZ
Value: %ALLUSERSPROFILE%\Start Menu
It has to be type REG_EXPAND_SZ that is why you have to use
regedt32.exe. "regedit" does not allow you to add an entry of this
type.
