1. Click 'Start' and then 'Control Panel' and go to 'User Accounts.' See if you have administrative privileges. If you do not, restart the system and log-in as administrator.
2. Check whether you have the latest version of Windows installer on your system. To find the version of Windows installer go to the 'System32' folder in the Windows directory and find the file 'MSI.DLL'. Right-click on it and go to 'Properties' and check the version. If the version is older than 3, you need to update the installer.

3. Download the latest version of Windows installer from microsoft.com and install using default options. A link to the download is in the Resources section of this article. Restart your system and log in as administrator.
4. Go back to the 'System32' folder and check whether the 'MSI.DLL' file is updated to the latest version.
5. Install the desired software with administrative rights. If Error 1406 still occurs, the problem is due to a bug in the software. Download a different version of the software and proceed with the installation.