http://www.mathworks.com/support/bugreports/details.html?rp=339795

Summary

MCR installation stops abruptly and displays error message

Description

When installing the MATLAB Component Runtime (MCR) using MCRinstaller.exe, the installation aborts and you receive the following error message:

"The wizard was interrupted before MATLAB component
Runtime 7.5 could be completely installed.

You system has not been modified.  To complete installation at 
another time, please run setup again."

Depending on which version of the Microsoft installer you have on your system, you might see this error message instead:

"Error 1304 writing to file MWArray.dll  Verify that you have access to that directory and later an Internal Error 2350 popup."

Workaround

   1. For 32-bit systems, install vcredist_x86.exe (just copy the file to your desktop and double-click on it).  For 64-bit systems, install vcredist_x64.exe.  These self-extracting executable files install runtime components of Visual C++ Libraries required to run applications developed with Visual C++ on a computer that does not have Visual C++ 2005 installed.
   2. Install the .exe on the target computer by double-clicking on the file you downloaded.
   3. Re-execute MCRInstaller.exe.

NOTE: When you run the MCR installer, you will see a pop-up message indicating that .Net Framework is not installed. Click the option to continue without installing .NET Framework.