It could be the AIR file is too big for the Windows 2000 machine.
Try to install a smaller AIR application on the machine and see if it works.
The AIR file installs if we install it independently. The problem comes when we install through the AIR installer supplied by Adobe for AIR runtime redistribution.
Is there a problem with the installers supplied by Adobe?
Could you get an application installation log and post here?
To get the log, create a file named .airappinstall.log file in your home directory.
This is the response i got from the Adobe AIR team
Ann Garrido-Nakagawa from Adobe AIR Team
Thanks for the details. I was able to reproduce and I’ve added the information to the bug report.
Talked to Ann yesterday. As I understand, this problem has to do with the installer is in DVD.