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Very strange - I have no idea what causes the problem on my Windows 7 Ultimate either. But I solved the problem - that's the most important.

Thank you. You are right. Even the 1.9.7 (latest) won't install in an empty subdirectory. I have to delete the entire subdirectory - then it works.

I downloaded the latest version 1.9.5 and ran the installer on my Windows 7 64 Ultimate. Even if the target subdirectory is totally empty, it still complaints - about "non empty subdirectory". The previous version 1.9.4 installs - without any problems. Thanks.