I have discovered a bug in setup.exe version 2.682.
I tried installing cygwin 1.7.1 on windows 7 x64.
It failed with the error message:
Unable to extract /etc/ -- the file is in use.
Which was a bit weird since the directory didn't exist yet.
The log message was a bit more clear it said:
LOG: 2 Failed to make the path for cygfile:///etc/alternatives/README
After much trial and error I found the solution, just by chance.
The setup program suggested installing cygwin in:
C:\cygwin\
I tried removing the last backspace, like this:
C:\cygwin
Then it installed perfectly.
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