When I try to install service using Installutil.exe I receive a message c:\windows\Microsoft.net\framework\v4.0.30319\Installutil.exe is not a valid Win32 application.
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I found out that for some reason the InstallUtil got corrupted during installation and got 0 byte size. So replacing that executable with correct size one - should fix the issue.

kulNinja
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referenced...http://ilanas.blogspot.ca/2007/02/net-wtf-installutilexe-gets-corrupted.html – kulNinja Oct 24 '13 at 16:08
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Used web installer to install .NET framework 4.5.1 and got this too. I wonder why? – Alvin Bunk Nov 03 '14 at 19:25
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I had the same problem. As I'm on 64 bit OS, I used the "Framework64" directory instead of the "Framework" directory, I used C:\Windows\Microsoft.NET\Framework64\v4.0.30319\ installutil.exe and then it work.

BELotfi
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This also happens if the service binary is built as a DLL instead of a Windows Application (.dll instead of .exe)

Gogu CelMare
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