Yer had the same problem with 'mobile' Nvidia GFX card installs. The work around is to extract the driver files to a folder then do a manual driver update from the windows device manager. (This basically bypasses the Nvidia installer and the error).
I think i might know why it wasnt working, I didnt download the mobile drivers(downloaded 9600 gt not 9600m gt), my bad, ill try when the mobile drivers are downloaded
laptopvideo2go is a great site for getting modded inf files to work with all nVidia cards and drivers. A lot of mobile drivers are only provided by the IHV or OEM, nVidia makes ref drivers but they aren't tuned like the normal ones.
Just a idea, but maybe you should report this issue directly to nVidia, so they can solve it in a future release
Sorry to state the obvious but.... Why not use the Windows 7 drivers from nVidia? I am using: 186.03_notebook_win7_64bit_international_whql and 190.62_desktop_win7_winvista_64bit_english_whql HTH
I had the exact same problem using '186.03_notebook_win7_64bit_international_whql' downloaded direct from Nvidia (except it was the 32bit driver). A manual install is the workaround until they fix it.
I was using the official drivers(from nvidia), I just downloaded the wrong version, i downloaded the 9-series and didn't even look at the option below [9-series (mobile)]. So when i went to install it didnt work, still have no idea about the 32bit part yet, but anyway all is good now with the mobile drivers installed.