Sorry for not giving sufficient information. I am on Windows 7, I am an admin on this machine. I installed the previous SP for C/A without any issues (actually, to cure this problem I uninstalled C/A on my PC, re-installed it, and installed the previous SP , which is SI56695. It works fine. As I saw int he readme.txt for the current SP, there WERE some changes in 5250 emulation.
iSeries System Administrator