Here is the solution:

Check your mm.cfg file for the entry:

PreloadSwf=C:/Documents and
Settings/Administrator/workspace/.metadata/.plugins/com.adobe.flash.pr
ofiler/ProfilerAgent.swf?host=localhost&port=9999

And remove it!

Leave everything else intact, and check to see if you can now install 
AIR.  Oliver Goldman at Adobe is investigating further ...

Does it have something to do with the debug version of FlashPlayer 10,  
or the Profiler in Flex Builder?  More to come ...

--- In [email protected], farid wl <fari...@...> wrote:
>
> hi
> yes, I have this problem too and searched and couldnt find good 
solution,
> everyone knows the solution pls help us out
> --- On Fri, 12/12/08, michael_corbridge <mdcor...@...> wrote:
> 
> From: michael_corbridge <mdcor...@...>
> Subject: [flexcoders] Adobe AIR Installer has encountered a problem
> To: [email protected]
> Date: Friday, December 12, 2008, 4:21 AM
> 
> 
> 
> 
> 
> 
> Has anyone come across this problem. I had successfully installed 
AIR 
> 1.5 previously when suddenly some of my AIR apps stopped running 
with 
> this error:
> 
> Adobe AIR Installer has encountered a problem and needs to close. We 
> are sorry for the inconvenience.
> 
> I note that I can still run my AIR apps through Flex Builder. A 
> google search on this error has not been fruitful.
> 
> Adobe, or anyone's help would be appreciated.
>



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