Software Deployment

There is a knowledge base article from Microsoft about this occurring when trying to install Office after uninstalling Lotus Notes because it does not clean up some entries in win.ini.
There are also discussions regarding this error that suggest it may surface when installing upgraded software without uninstalling the previous version. As a troubleshooting measure, remove any earlier versions of the software first to help identify this as the cause of your own error.
To obtain more detail about what "path" is being specified that is "empty". Turn on Windows Installer logging and attempt the operation again.

Check if there are entries in Create Folder table which represent directories which should be created on destination PC and which are acctually not needed by installing application.