Strange SmartUpgrade problem

I’m trying to upgrade from 6.5.x to 7.0.1. When SmartUpgrade launches, it successfully unpacks the attached installation kit (full install kit), Notes shuts down, I see the “Upgrading Notes…” dialog box and then I get the error dialog “Error applying transforms. Verify that the specified transform paths are valid.” The upgrade fails.

This is strange since I am not using a transform file. However, we did use a transform file during the last upgrade to install Notes 6.5.1. Has anyone else encountered this problem or have any ideas on how to correct?

Here is my SmartUpgrade package config:

Kit description: Windows: 6.5.* → 7.0.1

Enable this kit for use: Enabled

This Smart Upgrade kit can be used to update the following versions of Lotus Notes:

Source versions: Release 6.5.{12345}

Operating system: Windows/32

Localization: English

Release 6.5.4/6.0.5 or previous? Yes

After applying this kit, the client will be running this version of Lotus Notes:

Destination version: Release 7.0.1

Restart Notes after update: Restart

Location of update kit:

Location: Attached to this note

Attach update kit here: c88rcna.exe

Optional arguments for attached kit: /s /v"/qb+!"

Thanks in advance,

Bill