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This occurred to a customer due to an errant InstallShield installer process (msiexec.exe) that remained in memory, even though an installation was not running. The resolution was to kill the process and reboot the system to clear memory.
There are other reasons why you might get this error so its best to search "Error Central" at the InstallShield site using the link below. This can be used for any error code, not just 1607!
Search "Error Central" at InstallShield!