Installation problem: Python 2.6.6 (32-Bit) on Windows 7 (32-Bit)

[Cappy2112]

Has anyone else had problems running the msi for Python 2.6.6 on
Windows 7 Professional?

If I don't check "Compile .py to byte code", the installer completes
without error.

Checking "Compile .py to byte code" causes the following to be
displayed

"There is a problem with the windows installer package. A program run
as part of setup did not complete as expected"

1. I have GB of disk space available.
2. I have admin privileges
3. The MD5 checksum of the downloaded installer matches the MD5
checksum on python.org
4. Run As Adminsitrator is not available when I Shift-Right Click
(probably because my login already has admin privileges)

I'm also having a similar issue with the PythonWin32 extensions
installer on the same machine.