Hello Peter,
This is a bug in the installer that we did not forsee. The cause appears to be that your username has a space in it (Peter\Peter Schuster) but we are not enclosing the variable in quotes when running the command line.
We have added a critical bug into our system and this will definitely be fixed in our first service pack release.
In the meantime, we have a workaround suggestion: on your machine, create a new user with the same rights as your current user, but without spaces in the name. Then use those user credentials in the installer. When the installer finishes, you can then go into IIS and manually change the app pool identity for TeamPulse_APP_POOL to that of your current Peter Schuster account, and then finally you can delete the user you had to create in step 1.
Hopefully this solution will work out for you until we can get a service pack out with the fix in it. I have awarded you Telerik points for finding this bug.
Regards,
David Harris
the Telerik team
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