Here is InstallShield's diagnosis and solution for the 1607 problem:

Cause:
This error will occur if the permissions are not set correctly on the Installer folder found in the Windows folder.


Resolution:
If you cannot find the Installer folder it may be hidden on the system, in which case you can unhide it by going to Tools->Folder Options from Windows Explorer. Then, choose the View tab, and choose the "Show hidden files and folders" radio button under Files and Folders\Hidden files and folders.
Once this is done, right-click the Installer folder, and choose properties. Go to the Security tab, and make sure that the system as well as the user name trying to run the installation has full control on this folder.