Raplh, I am afraid that the web installer that you mentioned is the easiest way indeed is not that easy. Windows seems to mess up the pathing so it won't recognize the config.xml or some other xml file. I downloaded the web installer and ended up doing so much that seemed unnecessary. I will add them here later on.  Your answer seem to be in the right direction that I had to follow. There was no official documentation about it so thanks for your answer. 

I have used the web installer many, many, many times. Countless, really. We tested upgrading several CLM versions and installed from the recent build, not available for download on jazz.net using the web installer and other methods.

Having said that, bad internet connections, confused caching proxies and whatever effects can cause these online installs to fail. I have heard and read from various people, especially in Asia with poor internet connections having problems.

I prefer to download the Plain ZIP files or the ZIPed Installation Manager repositories.
for that reason. The other reason is, I might have the need to uninstall and reinstall for testing and I want to spare me the effort, time and bandwidth to download many times.

So, I use a download manager (as advertized in the download tips) and download those zip files. I wouldn't disagree, that sometimes the documentation could be better.

PS: I use 7zip (64 bit) and I have not had this path thing. I also usually try to unzip into a folder that has a short path e.g. D:/install/ and I also use a short path for where I install CLM to. The reason for that is, Windows still has issues with long path names and that could get into the way.

You might want to provide the download location you struggled with. If it is 5.0 I ran through all installs (except the web install) on Windows 7 and haven't come across your problem. Which does not mean it is not happening to you, it is just I was not seeing it.