Have you tried using the updated installer that idrougge linked to? I've used that with the Ultimate Blitz CD and had no problems since it fixes issues with the original installer on the CD. Also, when installing remember to delete the previous installation.
Also, when the CD is mounted on the Windows side the protection bits get messed up, so you're better off mounting it from the Amiga/UAE side. This should get rid of the write protected files issue.
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