Okay this is an issue that I had today and I found out that I wasn't the only one having this issue. Well apparently each and every time you go to install the game it puts a temporary file in the documents folder called SegaRallyInstall.txt. Anytime you disrupt the setup that file remains and when you go to reinstall you get the "Setup Is Already Running" error. So you'll just need to delete that and you'll be able to reinstall the game.
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