I did something similiar:
I had already read this entire thread and tried all the previously mentioned fixes - turning off security, deleting battle.net folder in programdata, running as admin all to no effect.
So I went into battle.net site, created an account and downloaded the game client and activated the game from there and was able to move past the "invalid installation option" stage however the initialisation meter stayed at 0%.
I had task manager open on performance tab which showed a CPU usage that you would expect on an install so I let it go up unitl the point were the CPU usage dropped back to idle 0% then went in to the disc and ran the setup file as admin but got an unexpected decryption error.
Turns out I had downloaded the English US version, when attempting to intall from the disc the setup file in programdata/battle.net/setup had always been diablo3_ensg so I unintalled the entire game and did the process all over but this time downloaded the English (SG) version from game client.
Same thing happened with the initialisation meter in launcher - it stayed at 0% while my CPU usage in task manager showed something was happening so (having spent more than 6 consecutive hours trying to fix the problem) I let it go while I went and did a few things.
When I got back my computer had entered sleep mode and there was an error message saying something about it not working - so frustrated and tired I didn't even read it properly - but there was a Diablo III folder in programfiles (x86) and it seemed to have all the files so on the off chance that it would work I went back into the disc and ran as admin and nearly fell over when it lauched and I was able to finally start playing the game.
So far no more problems.
This may be a little long winded but I'm not a tech (but have learnt a great deal more from researching this problem) and have no idea what actually fixed the problem just that this is what I did and it finally worked.
Good luck and don't give up!
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