Recently I said that the IIS 7 URL rewrite module will not work on Windows 7. Someone commented on my blog post that there is a workaround posted on the iis.net site. I know the IIS team says this works but I’ve tried it on multiple machines and it never works for me. I have not tried it on Windows Server 2008 R2 so perhaps it works there.
Alternatively, you can try this:
Before you run the installer change the registery key...
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\NET Framework Setup\NDP\v3.5\SP to 0 (orginal value should be 1).
then run the installer, then change it back to 1.
Tried that too - the installer finishes ok but the URL rewriter doesn't work properly