Answer: This bug only occurs on certain Windows systems. We are currently working out which versions of Windows cause this bug, and how to correct it.
However, until then here is how to avoid the bug:
Make certain that all drives (CD, DVD, floppy, etc.) connected to your computer have a disk (or card, etc.) in them before running the ChemDuet Installer. The error occurs when the ChemDuet Installer searches for a connected iPod, and having an empty drive causes an error on some systems.
Note that this bug only occurs on Windows systems. It does not affect the Mac OS ChemDuet Installer.