Can't install Adobe Photoshop 7.0.1 update

I installed Photoshop 7 in a customer's computer and when I am trying to install the 7.0.1 update I get a message that it cannot find the installation folder, even though it is there and the program sees it. I read that this might be an issue of the license being blacklisted, but the one I am using is a legally bought one, even though this was some time ago, that should not be a problem. Please help me on how to get this working.

1. Delete all the files in your <user name>/temp folder where <user name> is the user (you) attempting to update.  so, that might be guest or admin or something else.
C:\Documents and Settings\<user name>\Local Settings\Temp
Local Settings is normally hidden, so make sure to show your hidden folders.
2. Run the Photoshop updater again

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