This error message is displayed by the Microsoft Windows Installer engine and can be less than specific as to the true nature of the problem that occurred during the installation. The following is a non-exhaustive list of known causes for this error:
The custom action Source directory identifier is incorrect.
A custom action is referring to a Directory variable before the CostFinalize action has run.
The following solutions have resolved this error in the majority of cases:
As the Source of a custom action, System Folder was typed in. However, the correct name for the MSI directory variable used to identify the Windows System directory is SystemFolder, without the space.
Sequence custom actions using Directory properties following the CostFinalize action.