I did a little research on this issue...
Installation error: "Error 1325. homefolders is not a valid short file name"
While trying to install TATEMS the process stops, popping up the installation error: "Error 1325. homefolders is not a valid short file name"
This may resolve this error:
Open the registry by running regedit:
Then go to: HKEY_CURRENT_USER/Software/Microsoft/Windows/CurrentVersion/Explorer/User Shell Folders
Here you should change the Personal registry key from whatever it is now to
Then try the install again.
Note: Always use caution when editing the registry
More info in in case the solution above does not work
It runs right from your browser but you will probably need to be logged in as an Administrator to run it.
There is more information here on how to troubleshoot Windows Installer issues