Some versions of Windows will not run the Design Manager installation (uses Microsoft Windows Installer) unless a read/writeable C: drive exists. Live Update will also not work unless a C: drive is present. There are two workarounds for this problem.
- When installing on a Windows 2003 server or on a workstation hooked up to the network create a shared folder on the server entitled CDrive and give the appropriate users full access. On the workstation or on the server itself map a network drive to this folder and choose C: as the drive letter. Should C: be a removable disk or CD-ROM you will have to assign a different drive letter to that drive before you can map the C: drive. To assign drive letters go to the Computer Management Console, Disk Management, and then right-click the CD-ROM and choose Assign Drive Letter.
- Reassign the drive letters on your computer using traditional letters (such as C: for your main hard drive). See: http://support.microsoft.com/kb/307844/en-us