Question : Can't run any executable (install anything) on Server 2003 server

I just installed a new file server with Windows 2003 Server and went to install Antivirus on it and when I attemped to run the Setup.exe I got the error message "Windows cannot access the specified device, path, or file. You may not have the appropriate permissions to access the item." As a matter of fact, I get this error no matter what executable I am trying to run. Is this a new Windows security update? I have never had this problem before. This is just a member server in a domain that already has Data/File server, a PDC and an Exchange server. I am logged in as Domain administrator and have already added this to the local admin group.

Answer : Can't run any executable (install anything) on Server 2003 server

Remove IE7 Enhanced Security on these workstations from Add/Remove>Windows Components.

If that's not an option, then do the following:

From the workstations that can't run the files, add the servers to the Trusted Zone - file://server
Then in the Security tab of IE Options, select the Trusted Site checkmark then hit the Custom level...button.
Scroll down to under Miscellaneous  for "Launching applications and unsafe files" - set it to Enable.

Taken from this thread
http://www.experts-exchange.com/Hardware/Servers/Q_22138144.html