In case it will help anyone, I found that my specific error occurred because there was an old HTML Community zip file in the Install/Modules folder. I removed this and added the HTML module that was trying to be install with the newer version.

I was getting the "Installing Package File HTML_Community_05.06.01_Install: Error!" when going from 5.x to 6.x, and then when I tried to go to 7.x, the install just locked up. After doing what I stated above, the 7.x install worked correctly and updated the HTML Community module without issue.

I also received the error "Installing Package File Taxonomy_05.06.01_Install: Error!" I fixed this the same way.

Sebastian, thank you for adding this comment to the thread and for your continued contributions to this forum.

I do feel that this piece of information should be in the update documentation.  It would have saved me 3 days of work and a lot of frustration.  Or the application should check this folder or use a different one.  I shouldn't be penalized for not cleaning out a folder when I didn't even know I needed to do so.

Thanks again