Nope.... it went perfectly smooth!
I'm really stumped by that. Not dwell too long on it, apparently it seems possible this can happen ...
Note that Lazarus 1.8+ will make this much smoother because of the (integrated) Online Package manager.
I guess I will need to update to what?? 1.6.4?
I would rather wait until a stable 1.8 is released, but may not be able to
Then by all means wait for the 1.8 release (i'm personally waiting for that as well).
Just install an older version of BGRAbitmap/BGRAControls that matches your Lazarus version
(i admit, it is a bit of a stretch if above instructions are actually working as BGRA-author is usually working from Lazarus trunk, but it is worth a shot).
Don't forget to first remove ll remnants from previous BGRAxxxx installations before attempting to install an older version.
Also note that i am assuming that you installed the latest version of BGRA controls, on your Lazarus 1.6 (which as handoko mentioned might not be compatible with 1.6 Lazarus).