G'day again,
Just right click on the installer, select properties and from there you will see a menu with the compatibility options.
As I mentioned previously, it refused to install on my machine, it came up with the same garbage that you, and others are mentioning, so I installed the WindowsFX update and rebooted the computer and tried again, with the same message about it wasn't compatible with Windows 7.
So that is why I thought that I would try running the installer in Windows XP compatibility mode and it worked, so give it a go if you want to or wait until they update the installer.