I haven't been able to reproduce this on a 2008 x64; never happened no matter what I tried.
Apparently, this is a common problem with products that use Wise installer. From what I was reading, different products installed on different versions of Windows have had this same error happen -- see
http://www.msghelp.net/showthread.php?tid=47799, for example.
And the cause for the error according to
http://www.panoramafactory.com/trouble/trouble_494.html is the
creation of 8.3 filenames being disabled on your computer system. I have not confirmed this.