There are two ways to resolve this issue. One is to apply the following hotfix before the installation. The other is to follow the attached manual workaround instructions. It is recommended to attempt the hotfix first, as this is the simplest resolution.
The hotfix patch for this issue can be download from this location:
Delete the Video Studio 11 folder from C:\Program Files\Ulead Systems\
Right click on the desktop select new folder and name it install.
Launch windows explorer and copy the contents of the install cd to the install folder.
Within the install folder open info.ini in notepad and Set AVControlSDK to 0, from 1.
Start setup.exe, install the program.
After setup finished, navigate to \Utilities\AVControlSDK in the install folder and launch AVControl.exe to install the AVControl.
Video Studio will now be installed.