Error 1324: The folder path contains an invalid character

You get the following error when installing Iron Speed Designer:

Error -1324: The folder path [2] contains an invalid character

According to MacroVision, the makers of InstallShield, this error is known to occur in the following scenarios:

The path specified in the error message points to a hard-coded path (i.e., C:\TestFolder), rather than a system folder (i.e., [WindowsVolume]).
The path specified in the error message and contained in the Directory table contains an invalid character, such as <, >, /, \, :, *, ?, |, ", or null.
A path containing multiple levels, such as C:\Test\MyFolder, is being referenced directly in a single Directory table entry. Each level should have a unique entry in this table; referencing multiple levels in a single entry causes this error.
Duplicate entries exist in the Directory table or a particular directory (i.e., SHELL_OBJECT_FOLDER) has multiple entries within the table.
A file being referenced by the setup may have an invalid link. The file may have been moved or deleted since it was inserted into the project, thereby causing this error at run-time.
The system settings are incorrect on the target machine. For example, this issue has been known to occur on an English setup when the regional settings were set to Simple Chinese.