Recently, I was having issues in upgrading the VM Tools on a Windows 2003 server.Installation was not getting completed successfully. Hence, I tried uninstalling and re-installing the VM Tools. Unfortunately, I was unable to install the VM Tools and the error was “Setup cannot continue. The Microsoft Runtime DLL installer failed to complete installation”.

Luckily, I got an timely idea, I clicked on the setup, and when the error pop-up (before clicking “OK”) I opened %temp% directory and executed vcredist_x64.exe and VMware Tools.msi file manually, this worked perfectly.

Thanks,
WintelAdmin