I have a similar problem in Windows 7, if I find I'm telling you the solution
unexpected failure: Platform conversion failed. Process exited with error 203. O
utput was "Conversion complete"
java.io.IOException: Platform conversion failed. Process exited with error 203.
Output was "Conversion complete"
Your problem is also very strange. According to that list of error codes http://help.adobe.com/en_US/air/build/WSBE9908A0-8E3A-4329-8ABD-12F2A19AB5E9.html you got maybe a problem with the icons. But the exact error code is not listed as in my case.
I hope someone from Adobe reads this and has a complete list of the errors and helps us to fix it.
I have done the same on another machine, with Windows XP, and I have not had the problem. I think the problem is the virtual machine (JDS is required) or my Windows 7...
If it works on another machine you can use the installer generated with it.
I got no other Mac to test it on, but I built my installer on Win 7 and it works on Windows XP. Same thing with the Linux installers.
Is your Windows 7 running on 64 bit?
No its 32 bit, but I think something must be Windows 7. Sorry for the delay, but we were holiday in this area.
Ok, that errors are very strange and it would be nice if one of Adobe would post here, so that we both can fix them.
I'm working on Windows 7 32 bit as well and I got not problem to create a native installer.
If all this is very strange, if I see something else I will comment here. I'll try a 64 bit Mac that I have at home too.
Just a little update: with the release of the Flash Builder Update and Air 2.0 the problem was solved. I created my installer via the export function of the Flash Builder and it worked perfectly.