Cannot install AIR 3.2.0.2070 on Windows 7 (32 bit)

I am not able to install the latest version of Adobe AIR. I am running Windows 7 Ultimate 32 bit SP1.

Adobe AIR shows up as a program on the programs list in Windows control panel, however I get the following message when I try to run a program that requires Adobe AIR):

"This application requires a version of Adobe AIR which cannot be found"

I could remove it with the help of the Microsoft FixIt Utility but I am not able to install it correctly. I tried running it in XP SP2 Compatibility Mode with no luck.

The installation log is set forth below. Please help. Thanks.

[2012-06-04:20:50:08] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86

[2012-06-04:20:50:08] Commandline is: -silent -eulaAccepted

[2012-06-04:20:50:08] No installed runtime detected

[2012-06-04:20:50:08] Starting silent runtime install. Installing runtime version 3.2.0.2070

[2012-06-04:20:50:08] Installing msi at c:\users\peter\appdata\local\temp\airc5cd.tmp\setup.msi with guid {47FA2C44-D148-4DBC-AF60-B91934AA4842}

[2012-06-04:20:50:13] Runtime Installer end with exit code 0

[2012-06-04:14:47:51] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86

[2012-06-04:14:47:51] Commandline is:

[2012-06-04:14:47:51] No installed runtime detected

[2012-06-04:14:47:54] Relaunching with elevation

[2012-06-04:14:47:54] Launching subprocess with commandline c:\users\peter\appdata\local\temp\air8c6.tmp\adobe air installer.exe -ei

[2012-06-04:14:47:56] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86

[2012-06-04:14:47:56] Commandline is: -stdio \\.\pipe\AIR_5652_0 -ei

[2012-06-04:14:47:56] No installed runtime detected

[2012-06-04:14:47:56] Starting silent runtime install. Installing runtime version 3.2.0.2070

[2012-06-04:14:47:56] Reinstalling c:\users\peter\appdata\local\temp\air8c6.tmp\setup.msi

[2012-06-04:14:47:57] Runtime Installer end with exit code 0

[2012-06-04:14:47:57] Elevated install completed

[2012-06-04:14:48:00] Got an unexpected fatal error while quitting: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="Unhandled exception TypeError: Error #1009" errorID=1009]

[2012-06-04:14:48:00] Runtime Installer end with exit code 5

[2012-06-04:14:56:58] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86

[2012-06-04:14:56:58] Commandline is:

[2012-06-04:14:56:58] No installed runtime detected

[2012-06-04:14:57:09] Relaunching with elevation

[2012-06-04:14:57:09] Launching subprocess with commandline c:\users\peter\appdata\local\temp\airecfc.tmp\adobe air installer.exe -ei

[2012-06-04:14:57:12] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86

[2012-06-04:14:57:12] Commandline is: -stdio \\.\pipe\AIR_5652_0 -ei

[2012-06-04:14:57:12] No installed runtime detected

[2012-06-04:14:57:12] Starting silent runtime install. Installing runtime version 3.2.0.2070

[2012-06-04:14:57:12] Reinstalling c:\users\peter\appdata\local\temp\airecfc.tmp\setup.msi

[2012-06-04:14:57:15] Runtime Installer end with exit code 0

[2012-06-04:14:57:16] Elevated install completed

[2012-06-04:14:57:18] Got an unexpected fatal error while quitting: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="Unhandled exception TypeError: Error #1009" errorID=1009]

[2012-06-04:14:57:18] Runtime Installer end with exit code 5

[2012-06-05:01:43:17] Runtime Installer begin with version 3.2.0.2070 on Windows XP x86

[2012-06-05:01:43:17] Commandline is:

[2012-06-05:01:43:17] No installed runtime detected

[2012-06-05:01:43:23] Starting runtime install. Installing runtime version 3.2.0.2070

[2012-06-05:01:43:23] Installing msi at c:\users\peter\appdata\local\temp\air9887.tmp\setup.msi with guid {47FA2C44-D148-4DBC-AF60-B91934AA4842}

[2012-06-05:01:43:30] Got an unexpected fatal error while quitting: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="Unhandled exception TypeError: Error #1009" errorID=1009]

[2012-06-05:01:43:30] Runtime Installer end with exit code 5

[2012-06-05:02:45:01] Runtime Installer begin with version 3.2.0.2070 on Windows XP x86

[2012-06-05:02:45:01] Commandline is:

[2012-06-05:02:45:01] No installed runtime detected

[2012-06-05:02:46:20] Starting runtime install. Installing runtime version 3.2.0.2070

[2012-06-05:02:46:20] Installing msi at c:\users\peter\appdata\local\temp\airaac0.tmp\setup.msi with guid {47FA2C44-D148-4DBC-AF60-B91934AA4842}

[2012-06-05:02:46:26] Got an unexpected fatal error while quitting: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="Unhandled exception TypeError: Error #1009" errorID=1009]

[2012-06-05:02:46:26] Runtime Installer end with exit code 5

[2012-06-05:15:51:45] Runtime Installer begin with version 3.2.0.2070 on Windows XP x86

[2012-06-05:15:51:46] Commandline is:

[2012-06-05:15:51:46] No installed runtime detected

[2012-06-05:15:51:54] Starting runtime install. Installing runtime version 3.2.0.2070

[2012-06-05:15:51:55] Installing msi at c:\users\peter\appdata\local\temp\air559e.tmp\setup.msi with guid {47FA2C44-D148-4DBC-AF60-B91934AA4842}

[2012-06-05:15:52:11] Got an unexpected fatal error while quitting: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="Unhandled exception TypeError: Error #1009" errorID=1009]

[2012-06-05:15:52:11] Runtime Installer end with exit code 5