Just recently ran into the same problem mentioned in the original post. But my problem is solved for the time being.
What I found is that for several versions now, I cannot update WindowBlinds without running into this problem. Platform is Vista Business w/ SP1 x86 running Impulse for managing app installs and updates. I've no anti-virus or anti-malware programs running in the background. In fact, there isn't anything out of the ordinary that should interfere with software installs.
What I ended up doing, which seem to have worked around the persistent problem, is uninstall WindowBlinds, reboot, install WindowBlinds, and reboot. But why should I have to go through all that process when a mere update went fine? It's tiresome having to go through this process just to update it. Either WB or Impulse needs to handle the update process better so I don't have to run into this problem again.