I receive the error "Application initialization error" after running the flash installation file.
Running a company computer, Windows 7/SP1, where I have local admin rights. Running all as admin.
Attempted on IE8 (don't ask - company reqirement & a long story) and Firefox 31.6.0.
Current Flash version 18.104.22.1685.
I got the same error message. When I noticed it happened multiple times with different programs (Adobe Flash Player and Adobe Reader) I realized it's being blocked. Since I could not disable my BullGuard antivirus, I exited the program for the period of time of installation. It allowed me to install the programs. So try disabling your security/antivirus program.