I've installed Reader Library on my old Windows XP Pro system, on my Wife's Windows 7 beta system, on her Windows 7 Home Premium system, on my Windows 7 Ultimate system, on our Windows 7 Ultimate Laptop, on Vista Home Premium before going to Windows 7 Ultimate and on my Mother's Windows XP Home.
That makes 8 installs of Reader library that went without a single hitch. So really, I'd say something you have installed on your Windows system is the problem.
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