I was also getting the "Exception" error dialog and I had to click
Cancel twice before Wubi appeared.

After reading some of the above comments, I went to Disk Management and
unassigned the drive letter from my card reader. When I tried Wubi again
there were no errors.

This really needs fixing as Wubi is meant to be an easy way for people
to try Ubuntu and scary dialogs are likely to make a lot of people give
up right there.

-- 
wubi installer's pyrun.exe says "no disk"
https://bugs.launchpad.net/bugs/365881
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