Invalid Drive: S:\

Which was odd, since I told it to install to C:\Apps\VirtualBox. But looking deeper into it, the error happens when the installer is dealing with the desktop icons, which is indeed on S:\Storage\Desktop in my system.
My S: drive is a network share on my NAS mapped as a network drive. Using Windows' built in functionality I moved my desktop to this network drive. But the network drive is working fine and I never ran into this error with another application either.

I did manage to install the update correctly by moving the desktop location back to my C: drive temporarily and moving it back after the installation. The installer clearly doesn't like the network drive while other applications were accessing it at the same drive just fine.
I am using Windows 7 64 bit RTM (Home Premium)
Wasn't sure to report this on the bugtracker. Perhaps somebody can try to recreate this. On Windows Vista and 7 simply rightclick the Desktop folder in explorer, go to Properties -> Location, and move it to a network drive. After that try installing Virtualbox (have it create desktop shortcuts).