Setup Error Upgrading to 4.08 ( Never mind)

[ddouglass]

Yep. This is a dreaded Microsoft error that even they haven't figured out why it pops up and with their own program installs too. However it is harmless and does not prevent the install from completing. You are good to go.
I would suggest though that you follow the instructions on this page
http://www.mtu.com/upgrades/hoster/xp-changes.htm and upgrade your windows along with the other items listed to make Hoster run better. This link is also in your manual if you need to refer back to it.