Run the setup.exe directly from the Desktop folder off of the installation DVD.I found on the ESRI User Forum discussion another customer was receiving Director Player Error "This application requires an Xtra (Text) that either does not exist or failed to initialize properly. Please make sure the appropriate Xtras are in the Xtras folder(s)." He received several additional error messages referring to the (Text) changes to Font, Mpeg, Flash Movie) then he had "Handler not identified" errors. The resolution was installing an updated version of Nero (v7.0), which solved the problem.