Hi, Stephanie,
The user doing the install needs to be able to have enough rights to allow the install to do what it has to do. The file may have been unpacked the user's local workstation as they have admin rights to that. They need to have enough rights to allow the install to do what is needed on the server.
You might want to check to ensure that no other process is holding that file open on the server for any reason as this would also explain why it can't be updated by the install. Make sure no one is has any Adagio modules open and try the install again.
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Regards,
Softrak Tech Support