I don't think your issue are paths, as far as I understand you your issue is the updater getting stuck. Maybe just let it sit there for a few minutes before closing it via task manager.
Issues that come to mind which could be causing your issue may be file access control permissions not allowing the updater to write to that folder even though it is being run as administrator (since I do not have Win 7 I cannot tell you where to check that), or an active virus scanner running in the background locking the file, or some firewall stalling the connection.
PS: Your autolaunch EQ2 path needs to be configured as explained in
this post