Thank you for your reply.
The common factor in your failed attempts appears to be that you installed from a .zip file (rather than a .tar.gz file). Maybe 7zip is messing up the zip extraction. I use Windows' built in zip facilities: double-click the zip archive and select "Extract all files" from the task pane or File menu in Explorer.
I tried Windows' built in zip extractor as you suggest and also tried with WinRAR, but same problem occured.
I also install into C:\NTEmacs\. This works for me on both XP and Vista. Installing programs ported from Unix into a path containing spaces may cause problems (as may installing into "Program Files" on Vista, for other reasons).
During this trials, I extract under C:\emacs\ folder.