The Installer itself can be run from anywhere you'd like, just make sure its unpacked and not in a zip file with the other folders, etc.
Also: Did the Installer something during installation? or was it instantly finished? because each of the installers take a while (excluding the Hotfix one)
Just to be sure: Heres a Manual Installation tutorial:
Get all of the 3 Installers [MainResources, 0.6.1.9P2RC3, Hotfix #1]
INSTALLING MAINRESOURCES: Go to the Setup folder and drag everything in there over to your MAIN star wolves installation, the place where the exe also is basically.
INSTALLING THE UPDATE: Go to the Setup folder and drag everything to the \Data\ folder of the game.
INSTALLING THE HOTFIX: Go to the Setup folder and drag everything to the \Data\ folder of the game.
If you did this manual installation, and it still doesn't work, please give me a picture of your sw3 main directory
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