You get the following error when you try to run the Installutil.exe from the Run command line.
Well, that is because the installutil is not in the Windows or System folders where Windows can find it easily.
The Installutil.exe is a command line installer tool
that is used to to install and uninstall windows services and server resources by executing the installer components in specified assemblies. This tool is automatically installed with Visual Studio and with the Windows SDK.
To run the utility, you will have to use the Visual Studio Command Prompt or the Windows SDK Command Prompt (CMD Shell). These utilities enable you to run the tool easily, without navigating to the installation folder.
If you have Visual Studio installed on your computer: On the taskbar, click Start, click All Programs, click Visual Studio, click Visual Studio Tools, and then click Visual Studio Command Prompt.
At the command prompt, type the following:
installutil [/u[ninstall]] [options] YourExeFileNameWithFullPath [[options] assembly] ...
Lean more details about Installutil.exe here on MSDN.