Updates:
        Status: Invalid

Comment #3 on issue 5588 by kuch...@chromium.org: The Chrome installer does  
not run itself as an administrator (on Windows Vista), so it can't set  
itself as the default browser.
http://code.google.com/p/chromium/issues/detail?id=5588

If you leave the checkbox selected, UAC dialog should come up because  
Google Chrome
installer will try to elevate to an administrator. If UAC is accepted  
Chrome should
become default.

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