Windows Installer does not permit installation via RDP – Jocha

When you try to install an MSI-package through a remote desktop (RDP) session you could get the “Windows Installer does not permit installation from a Remote Desktop Connection” dialog.
Most people seem to think that the \\tsclient\ is a regular network share, but it is not! It’s a software feature in the Terminal Services-service.

Fix #1:

Copy the MSI package to the remote client and run it locally.

Fix #2:

If you find yourself in the position where you must use the mapped drive for installing software, map the \\tsclient\ first and then run it from the new drive.

net use X: \\tsclient\

then install from the X:\ drive.. seems the installer does not check the “real” path to the mapped drive.

more info at: http://support.microsoft.com/kb/927063