Why would an end user (non-admin, but knowledgable) attempt (but fail) to install FRSdiag.exe on their workstation? Is there a security issue here?
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I think you would have to ask the user why they did it. I don't see an inherent security issue, but it would depend on what they were trying to accomplish.

EBGreen
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I'd ask them, but take some precautions - It could have been something innocent wondering how to fix a problem, but it could have been a rogue employee trying to gain access to more information about the network than they need. I can't think of a way they would actually gain anything useful doing this alone though.

Steve Radich-BitShop.com
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Based on the function of the file I would guess he was told it will be able to do something for him? Possible he is trying to find a solution for a problem, possibly backing up his files to take home or keeping backups generally?
(Please note I am just randomly guessing)

BinaryMisfit
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