When you enter in that password, that installer program is then run under that administrative account and has the same level of access as that administrative account.
Different processes on Windows, and really pretty much any modern OS, can run as different users. Each user may have varying degrees of access to the system. Every time you enter in that administrative password, you are potentially opening pandora's box. The problem is that the alternative is the program cannot be installed and thus used, so you must consider your actions carefully. And by even asking this question, you're already well on the way down the correct path. You have a ways to go yet, but you're at least going in the right direction.
Windows Vista Home Premium, 32 bit
I log in via a limited user account. But if I need to install a program. I seem to be able to do so by typing in the admin password when prompted
So if I install something, lets say java and I do it from the limited user account, but with the admin password, what negative can come from it?
What about using the remove program function while logged in on limited user account? I seem to be able to do taht too with using the admin password when prompted