I recently upgraded my desktop from windows xp to windows 7 and am in the process of reinstalling everything.

I'm having a problem with 3D studio max, When I try to install it and it starts the extracter program it doesnt extract anything, I just get an error saying cant extract that file for every single file.

3D max worked fine with windows xp.

I've uploaded a screen shot for better reference.
Does anybody know what it could be, has windows 7 got some ridiculous security turned on or something?

If the literal stated requirements are to believed you may require W7 Professional:
Autodesk - Autodesk 3ds Max Products - System Requirements


Otherwise, you probably need to be running as administrator:

Run the program as Administrator by right-clicking on the program icon and clicking Properties. Next click Run as Administrator, you may be asked for your admin password.