Can't install IA 2010 hotfix

I was happily using a Windows 2003 Server machine as my build machine, but now we are replacing that with a Windows 2012 Server. Unfortunately we need to support legacy software that has a IA 2010 installer, so I need to install 2010 on my machine. I had to check windows 7 compatibility mode on the installer executable to get it to work. But now I can't install the hot fix. It first says it can't find the IA installer, and then after I select the folder, it says "Not a valid IA folder" "The chosen folder does not appear to be a valid installanywhere 2010 folder".

Any ideas on how to convince it the folder is valid? Or how to find the folder automatically? I tried installing on other OS's and Windows 2008 R2 fails in the same way, but plain Windows 2008 server succeeds. I have administrator privileges in all cases.