This is the nsane install. You can either use this or install K-Lite and then put the clean kazaa.exe(and magnet.exe) into the folder. You seem to be doing something else and not succeeding.
right click/save as
http://www.realityradio.org/software/klite26rc20bn.exe
http://www.rileysresource.net/hosted/klite26rc20bn.exe