After several installs I'm still getting ImageMagick is not installed. I followed the advice in this thread http://www.lavasoftworks.com/icomancer/forum/index.php?id=124 and shut down all antivirus, installed and ran icomancer and ImageMagick as admin, and checked the "Install ImageMagickObject OLE Control for VBscript, Visual Basic, and WSH" option. When installing ImageMagick I get

"Unable to execute file ppm

shelExecuteEx failed; code 2
The system cannot find the file specified"

but it seems to be installed and working.

Now it starts but stops loading at Processing 16x16 colored blue base image for Windows Crystal Blue (Basic/Blue) and this error pops up

If you have Windows UAC enabled, you must run icomancer as administrator. I'm not sure if in any recent update to windows 7 keeps a portion of UAC enabled even if you turn it off -like it happens on Windows 8-.

This error you've posting is related to the temp directory. Icomancer can't write to it. And that's Windows UAC messing with it.