You need to do more than create a new Temp folder. You need to set the environment variable TEMP to point at it AND it may not contain a space.
I had
TEMP=C:\DOCUME~1\username\Local Settings\Temp
1. Open a command prompt
2. Dir c:\temp If it doesn't exist: md c:\temp
3. SET TEMP=c:\temp
4. cd <installer folder>
5. run installer
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