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I had the same problem myself last week.  One suggestion that I found for this problem was that the InstallShield database may be corrupt.  The solution in that case was to rename or delete the following folder and then reboot the machine:

C:\Program Files\Common Files\InstallShield\Universal\Adobe

This is suppossed to force InstallShield to recreate that directory structure. This did not work in my case, but it may work for you.

In my particular case, the problem appeared to be tied to the location of the installation files.  I had placed them under "My Documents", so they were being run from "C:\Documents and Settings\kate.sherwood\My Documents".  Once I moved the install set to the root of C:\ then the installation was able to continue as expected.

Regards,

Kate