unable to create or save new files in the folder in which this application was downloaded

I am not able to install Windows 7 on my laptop. I bought the Windows 7 pro 64 bit upgrade from microsoft and after downloading it I recieved an ISO file and I thought that I would burn it to a dvd by nero software. As soon as the download finished I got 3 files namely: Win7-P-Retail-en-us-x64.exe

setup1.box

setup2.box

If I try to open the Win7-P-Retail-en-us-x64.exe by double clicking it I get an error message:
"We are unable to create or save new files in the folder in which this application was downloaded. Please check the folder properties to make sure that you have security permission on the folder to write files and that the folder is not read-only".

So, I am unable to find the iso file that I can burn to a dvd. Can anyone please help me? Thank you

Straight solution from Microsoft:

1. You will need to use an additional Microsoft command-line tool, called Oscdimg.
Details here
Download here

Download the .zip file and extract it. Then cut and paste the Oscdimg.exe file into your C:\Windows\System32 directory

2. You now need to start up your command prompt, which can be done by Start->Run then enter 'cmd' into the prompt. (Run as administrator if in Vista!)

3. You should now have the command prompt open, now you need to use the Oscdimg tool to create the image, by entering the following:
Oscdimg.exe -u2 -bC:\<YOUR DIR> \expandedSetup\boot\etfsboot.com -h C:\<YOUR DIR> \expandedSetup C:\<YOUR DIR> \Win7.iso

For example: Oscdimg.exe -u2 -bC:\Users\James\Downloads\expandedSetup\boot\etfsboot.com -h C:\ Users\James\Downloads \expandedSetup C:\ Users\James\Downloads \Win7.iso

It will now scan the source tree then begin creating the image. PLEASE note: you must replace '<YOUR DIR> ' appropriatly as to where you have downloaded the files.

4. You should now have an image file, called Win7.iso, in the same directory.

5. You can now burn this .iso file to a blank DVD using appropriate software. I personally use PowerISO (You dont need the paid version to burn the image)

6. Viola! You have your not so shiney Windows 7 disk. Restart your computer and install away!

Download the DLMWin7.exe app but dont run it. Afterwards right click on it and select unblock. Select the bottom box under compatibility tab and run it as an admin and then close it. After closing right click the DLMWin7.exe and select run as admin and then load the files to a new folder. Then just simply run it and it should unbox itself completely.

Try to re-download all the three installation files again to ensure that the downloads is complete, full and not corrupt and in order to fix the Windows 7 installation issue, users can make a bootable Windows 7 ISO image with the “expandedSetup” folder. The installation of Windows 7, either upgrade or custom, can be started by mounting the ISO image in a virtual CD/DVD-ROM drive, or burn to DVD to boot up the computer from.

Source: mydigitallife.info