http://bugs.winehq.org/show_bug.cgi?id=8506
------- Additional Comments From austinenglish@gmail.com 2007-07-06 14:45 ------- Rather than deleting ~/.wine, rename it and test the bug again.
$ mv ~/.wine ~/.wine-good $ winecfg $ wine setup.exe
After testing and reporting terminal output/errors/etc.
$ rm -rf ~/.wine $ mv ~/.wine-good ~/.wine
And your old wine is back, with games and configs and what not.
HTH