On what version of Windows are you trying to install AE7 ?
I've read somewhere that AE7 won't install properly on Windows Vista.
I am running Windows XP
Is it the first time you try to install AE7 with your installation disk ? It may be a corrupted file on the disk.
Also is your Graphic card compatible with AE7. Maybe it can be because of some incompatibilities due to recent hardware released well after AE7.
I've used the disk before - it appears to be fine physically. I beleive the error is occuring too early in the process to be related to graphics drivers - I was able to install Premire Elements, Photoshop Elements and numerous other Adobe products without issue.
Have you got any post AE7 products ?
If yes, your problem could come from that. Maybe the installer finds Adobe shared components that are too recent for it. For exemple, you cannot reinstall a CS3 product if a CS4 product is installed, even if the CS4 product is not the same as the CS3 one.
Even Acrobat or flash could cause such crash at install.
I was able to install Premire Elements, Photoshop Elements and numerous other Adobe products without issue.
Quite possible, but still, I think Sébastien has a point. If indeed the versions of the other products are newer, you may experience lockages. This can be something as silly as a font not being overwritable because it already exists as a newer version. A possible solution to the dilemma would be to use the CS4 Clean Utility from the support pages. It unregisters your Adobe products from the Windows installer database (while leaving the programs intact and usable) and may make the install go through. Since it requires you to instal lthe MS Installer Cleanup utility, you may of course also directly inspect your installed software there and remove entries, if necessary. Also make sure to run a Windows Update. Choosing Custom mode, you may wish to install .NET 1.1 truntime or update Internet Explorer which will also fully update your installer routines to the latest. Let us know if any of that helps.