LZ32.dll is either not designed to run on Windows or it contains an error.

Occasionally when trying to install software on Windows 7 I've hit the error:

No promises this will work in every situation, but I've been able to resolve this by:

1. Downloading the version of the DLL located here.
2. Placing the LZ32.dll in the same directory where the setup file is located that is throwing the error.

Try to run your setup again now. It will pull the locally found DLL by default and will hopefully continue beyond the point where it was bombing before. If for some reason you can't place the DLL file in the same directory with your setup file, you'd need to backup and replace the DLL found under under your Windows directory (but this isn't recommended).