I've Installed it without any problem (Win 7 x64), as the Co8 mod. My anti-virus (Avast) didn't notice anything during the install (I have the Toee.exe on the folder).
Game seems to play just fine too (even in 1680x1050 via the toee.cfg file).

If you google the error MOVEFILE you will see 3 common errors MOVEFILE 2 or 5 or 32

All related to UAC, Virus, Firewall, Administrator settings

Allthough you may think you dont have a virus checker - remember there is BITLOCKER, MSESSENTIALS etc etc as standard in certain operating systems

Everyone here has a view about ADMIN RIGHTS etc, I always tend to move away from these issues in Vista and Win7 by having a gaming profile devoid of UAC and Admin settings, as creating a new profile means you can play with the systems policy under that profile

Hope you sort your issue out - but I encourage other GOG members to maybe think about having a perticular profile just for gaming and therefore eliminate such hassles in future

This may help or not, but I hope it gives some insight to a perm solution to you all :-)

After all of the errors I had yesterday, I was able to add it to the gog downloader queue. This version had NO ERRORS! Not sure why it gets messed up downloading via the browser (google chrome btw) but, it's installing fine right now! I'll edit if any other problems arise. Thanks to all for the suggestions!

I am also having this problem and none of these solutions are working.

EDIT:
Well, it's been 24 hours with no reply from tech support. This looks like my first and last download from GOG. It's a shame too because I probably would have purchased Planescape Torment and Master of Orion as well as some others down the line.

Don't give up so easily. I put in a tech issue ticket and still haven't gotten a response either. I'm sure that there will be issues with any game that gets released due to the sheer amount of configurations people are running. I made sure that windows firewall, defender and all antivirus' were down, downloaded it off of the gog downloader and then It installed just fine. Dont have any firewall/anti virus up during installation. And if you dont succeed, re-download it again. Worked for me with some patience. And I'm enjoying a great game! Just keep trying!

With most anti-virus software you can set aside certain files and folders to be excluded from the scans. I was able to do this with Norton by excluding both the ToEE installer and the ToEE install directory and its been working fine ever since.

well, i don't know how okay this is but i downloaded a no cd crack for version and it worked(i used to get the error 2 thing when running the game(didn't have an executable), no AV, win defender off, UAC off, running as admin). i installed Co8 and it seems to work fine. i couldn't get past the main menu due to work reasons.

i hope this does not go against EULA though

Started another post with this. Let me know if it works:

If you have anti-virus programs, turn off their active scanning when installing.

If you do not have AV programs and you get a "Code 2" error when installing: if you have Windows XP open the Windows Security Center (either in the control panel, or click the little icon in your toolbar at the bottom of your desktop) and under "Virus Protection" click the "Recommendations" button, then check the "I have an anti-virus program...", then click OK. Close the center and install the game. After installation (you shouldn't have gotten any errors), go to C:\Program Files\GOG.com\Temple of Elemental Evil (or wherever you installed it) and find ToEE3.exe and create a shortcut on your desktop that points to that .exe. Double click your new shortcut and enjoy.

This worked for me on my XP machine, haven't tried it on my Windows 7 machine, but the settings should be similar. If this does not work for you HAHA. Just kidding, if it doesn't work then keep trying. I'll update if I find anything else out.