Change the icon to just contain "installer" as default tool instead of ":c/installer" (:c:\installer is totally bogus... this isnt MSDOS). Where do you do this? Hightlight the install icon and pick "Icon -> Information" from the menu.
Or open a shell and do "installer Amistart.install".
If the above fails, it probably means you dont have installer on your system, you can download one from f.ex
http://aminet.net/package/util/misc/Installer-43_3The scripts for installer are written in a lisp-alike language that has nothing to do with amiga scripts, or other DOS batch scripts.