I had the same thing happen this weekend. I read some suggestions on the web, nothing worked so I manually downloaded the files from IK's website and installed some of them, archived others seeing as Total Studio takes up a lot of room. When letting the product manager do an installation automatically it would install to C drive, public documents (Windows O/S) whereas my IK installations are primarily on a different drive so I was wondering if that was the culprit. I suspect the Java error may not actually be a Java issue.
My hard drives aren't that old and given the number of people that have had the Java error I do not suspect a drive issue to be the cause. More likely some shitty installer design on IK's part as it's always seemed to me that their approach to things was... not as good as one would hope for. Native Access, for example, at least detects manual installations when refreshed or if you close/open it after a manual installation, not so for IK. I was able to finish installing Sampletank 4 but the product manager still indicates a number of files to yet be downloaded and has no idea that it's fully installed. Hopefully that won't be an issue somewhere down the road. I refuse to install to its C drive default location as I make backups of C drive in case it crashes and don't need ridiculously sized restore files to also back up.