Again, you are looking into the wrong folder.
Also, I believe you are confusing about what this thread is about, because you posted in a thread from January, and it probably doesn't have anything to do with your problem.
This thread was about a specific issue, which is the
"Internal Error. An attempt was made to expand the 'App' constant before it was initialized" error message happening while installing.
You said:
I have the same problem with windows 7 apart from KLAX keeps crashing and then telling me to update to the latest version of couatl...
Are you SURE you are having the SAME problem ?
Your sentence is not very clear:
are you saying that you are BOTH getting the error in the installer AND KLAX is crashing telling to update the Addon Manager ?
OR
are you saying you just have KLAX is crashing telling to update the Addon Manager ? If this is the case, your problem doesn't have anything to do with this thread, and there wasn't any need to create an INSTALLATION LOG, which was needed in case you had an INSTALLER error.
If you are getting that "Crash" (which is not a crash, it's a diagnostic indicating there was some kind of problem on the Couatl scripting engine), the message is not only saying you should update the Stand-Alone Addon Manager, it ALSO says to check the following folder:
%APPDATA%\Virtuali\Couatl.ERR
If you are seeing that message, it's SURE that Couatl.ERR HAS been created. Fact you are posting the installation log instead, seems to indicate you are still looking in the wrong folder, because the previous instructions about how to create a INSTALLATION log file (that you don't seem to need, since I don't see any errors in your installer), explained how to create a .LOG file in your DESKTOP or in any place where you downloaded the scenery installer .exe so, if you followed those instructions, and you are seeing just the INSTALLATION log, it's fairly sure you are looking in the wrong folder.
Again, the folder where the Couatl.ERR file has been created (and it has, otherwise you wouldn't see that message) is:
%APPDATA%\Virtuali\Couatl.ERR
Type this exactly as above on the Windows blank search area that is accessed after pressing the Start button, then press Enter. The correct folder should open and I'm sure your Couatl.ERR file is there.