There's some advice given about using Limited User accounts and you should see that message.
You bring up a good point here. That is, should Microsoft have supplied a more user friendly Windows install that didn't require owners to decide what account type there is?
Try it with a new admin account and even then, the message should pop up about "An admin account" or such is needed and to click OK to install. You may ask why this happens and it's all about security. Folk asked for this!
I had to reinstall yesterday Windows 7 on my HP PC, and have to download and reinstall some application programs which I used to have. While reinstalling Windows 7, I had identified myself as the system administrator, and still after downloading SOME, not all, of the application programs, after attempting next to go through the installment procedure, I get blocked with a warning message whose wording is sometimes a little different but is essentially the same. Thus, the message for installing LibreOffice is "System administrator has set policies to prevent this installation"; the message for Flashplayer is "You must be logged in as administrator when installing this program."
How do I solve the above strange problem of my inability to install some apps?