I'm sorry you're running into installation issues with AIR. Microsoft has released a utility that can help resolve installation problems. Would you mind giving this a try and let us know how it works for you? When running the Fix it, go through the uninstall process and try to remove Adobe AIR from your system. Once finished, download the latest version of AIR and install again.
Microsoft Install and Uninstall Fix It
Another alternative is to create a new, temporary user account and install AIR from there. Once installed, go back to your normal account and try running your AIR app again.