i had exactly the same error message while installing BGT via Big World Install.bat on my Win7 64 system
Detected Baldur's Gate I directory as C:\Program Files\Black Isle\Baldur's Gate.
Is this correct? [Y]es or [N]o
User answer: ""C:\Program Files\Black Isle\Baldur's Gate""
Detected Baldur's Gate I directory as C:\Program Files\Black Isle\Baldur's Gate.
Is this correct? [Y]es or [N]o
User answer: "N"
Enter the full path to your Baldur's Gate installation then press Enter.
Stopping installation because of error.
Stopping installation because of error.
This error always occured when BG1 was installed in C:\Program Files\Black Isle\Baldur's Gate or C:\Program Files (x86)\Black Isle\Baldur's Gate.
To fix it i moved the directory to C:\Games\, changed the entry in baldur.ini, deleted the directories you can see above and killed their registry entries with "Wise Registry Cleaner Free"
Greetings!
Edited by Jarl2, 03 March 2012 - 08:00 AM.