For me, installation on a Vista 32 bit VM I have went fine, but on a physical Windows 7 64 bit box, there was the traditional 20 minutes of MSI ‘validating’ the installation by throttling a core (small mercies the MSI developers don’t appear to have heard of the CreateThread function I suppose!). I also got this in the middle of it:
I had this with a previous update too. The problem is that the installer deletes the original file, then forgets it has done so and throws an ‘insufficient privileges’ error when it finds nothing to overwrite! The fix is simple – create a dummy bds.exe before clicking Retry. You can do this by opening Notepad with administrator privileges (e.g., by calling Notepad up in the Start Menu, right clicking on its icon and selecting Run as Administrator), and saving a blank file called bds.exe in the RAD Studio bin directory.
[Edit: just reading the forums, it seems some people can get away with just clicking 'retry' without creating a dummy file. That may have worked for me too, I don't know, but a previous update wouldn't continue without a dummy file being created.]