Jim/harris,
I ran chkdsk/r and apart from taking forever to complete, the end result is the same...
The DXSETUP.exe created by directx_Jun2010_redist.exe still returns the error...
DXSETUP.exe is not a valid Win32 application.
(Which amongst other things can translate as, -
File is not designed for your version of Windows.)
So this could be another Windows7 created problem. - My Win2kPro system is perfectly happy with
directx_aug2009_redist.exe 