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Originally Posted by unkJE
I use Windows Update on Win7...
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Thanks for jumping in with more info, and glad to hear your system is working. The issue related to Win7 is documented at
avid.force.com/pkb/articles/Error_Message/iLok-License-Manager-error-Windows-7. The required Win update was not automatically installed and required manual installation to be able to install iLM, so the iLM installer was updated to not require that to eliminate the problem. For the OP, the error was actually caused by having an older version of iLM installed so updating iLM solved that.