I tried to install X3c and continue to get an error dialog that says FaultReporter.exe cannot be replaced.
What do I do?

it could have been open at the time it was being updated/upgraded. make sure your antivirus software isn't interfering. disable it and try and re-install x3c again.  if it is still failing then might be trying to report a fault and hence it is loaded??  I wonder if there is some sort of install log you can check to see what was happening at the time.

Ok I'll probably try to install it when I restart my computer next to make sure only the bare minimum is running.  I've not run into this before when installing/updating any Cakewalk software so I found it might be worth asking around about.

And if that fails try deleting faultreporter.exe on your hard drive (search for it) manually before upgrade (back it up first).

Hi fooman,
 
If you updated to X3b, the fault reporter components are the same and do not need to be updated. 
 
If you are updating from X3a or earlier, and you had a crash that called FaultReporter.exe before running the X3c patch, and you did not reboot the computer, this may happen. A reboot of the system should allow the component to be updated. You can simply run the X3c patch again after a reboot. 

Thanks guys.
I have the X3b update installed.  I was using Sonar before the update and had actually run across an issue with SD3 that caused me to stop working and attempt to install the upgrade.  Perhaps that has something to do with it.
 
I will restart the PC and try again.  If that fails, I'll move the FaultReporter.exe to another location as a backup and then attempt to install again.
 
Thanks a ton for the help guys!!

Just as an update, restarted the PC and everything worked out.
Thanks for the help guys!

Ah the IT crowd :)