I marked this post as a question and updated the tags to increase visibility.
I am not familiar with this error message. It is definitely odd that it is referencing Windows Vista if you are actually running Windows 7. How are you starting the installation wizard? You should be running the index.htm file found on the root of the installation disk. You also need to make sure that you are logged on as a local administrator in Windows.
Has MSD ChemStation (this version or any previous versions) been installed on this PC previously?