Moderators: When people are asking for help, please research something before you lock the thread. I could be wrong, but I think the person asking for help just made a mistake in semantics, he's not talking about pirated software. UESP is a pretty well known (and reputable, afaik) Elder Scrolls site.
The Elder Scroller - I hope someone else can shed a little more light on your problem, but I think the problem may be you are using a setup program intended for the Arena CD (ver 1.7) to run the Bethesda free release (version 1.6).
You may have to uninstall (keep your saves or back them up) and reinstall the Bethesda 1.6 version. Either that or look for the CD version on Ebay or Amazon or something.