Dynamics 2015 Installation error SetupServer.exe is not a valid Win32.exe application

My enviroment:

Hyper V virtual server
Windows Server 2008 R2 w/ SP1 running on a domain

IIS installed
SQL 2008 installed

8GB memory on Quad core i7

I extracted the installation files from the ISO and copied them to a local directory on the server. Right clicked on setupserver.exe and ran as administrator and I get the following error:

SetupServer.exe is not a valid Win32.exe application

I tested the same setup files on the Hyper V server and received no errors.

Any advise most appreciated.