This error will appear when permissions tighter than the default ActiveX DLL security permissions are applied to the .NET framework. These can be adjusted in Internet Explorer or the .NET framework configuration screen in:
Control Panel > Administrative Tools > Microsoft .NET Framework 1.1 Configuration.
To adjust these settings:
1. Open Control Panel > Administrative Tools > Microsoft .NET Framework 1.1 Configuration
2. Click on Configure Code Access Security Policy
3. Click on Adjust Zone Security
4. Click on Make changes to this computer
5. Select My Computer and set the level to Full Trust
6. Click Next and Finish
7. Restart the Pharos Blueprint Installation
Note: you may need to remove the created c:\program files\pharosblueprint directory that was created during the failed installation.