As soon as i updated Powershell to v3.0 instead of 2.0 - the "RegisterXRMTooling.ps1" script executed fine and succesfully installed!
On to the next hurdle....
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PS C:\Windows\system32> get-executionpolicy
Unrestricted
PS C:\Windows\system32> cd C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell
PS C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell> .\RegisterXRMTooling.ps1
Found Microsoft.Xrm.Tooling.CrmConnector.Powershell.dll
Microsoft (R) .NET Framework Installation utility Version 4.7.2558.0
Copyright (C) Microsoft Corporation. All rights reserved.
Running a transacted installation.
Beginning the Install phase of the installation.
See the contents of the log file for the C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmCo
nnector.Powershell.dll assembly's progress.
The file is located at C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell
.InstallLog.
Installing assembly 'C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.d
ll'.
Affected parameters are:
logtoconsole =
assemblypath = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.dll
logfile = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.InstallLo
g
The Install phase completed successfully, and the Commit phase is beginning.
See the contents of the log file for the C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmCo
nnector.Powershell.dll assembly's progress.
The file is located at C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell
.InstallLog.
Committing assembly 'C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.d
ll'.
Affected parameters are:
logtoconsole =
assemblypath = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.dll
logfile = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.CrmConnector.Powershell.InstallLo
g
The Commit phase completed successfully.
The transacted install has completed.
Found Microsoft.Xrm.Tooling.PackageDeployment.Powershell.dll
Microsoft (R) .NET Framework Installation utility Version 4.7.2558.0
Copyright (C) Microsoft Corporation. All rights reserved.
Running a transacted installation.
Beginning the Install phase of the installation.
See the contents of the log file for the C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.Packa
geDeployment.Powershell.dll assembly's progress.
The file is located at C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Power
shell.InstallLog.
Installing assembly 'C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powersh
ell.dll'.
Affected parameters are:
logtoconsole =
assemblypath = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powershell
.dll
logfile = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powershell.Inst
allLog
The Install phase completed successfully, and the Commit phase is beginning.
See the contents of the log file for the C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.Packa
geDeployment.Powershell.dll assembly's progress.
The file is located at C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Power
shell.InstallLog.
Committing assembly 'C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powersh
ell.dll'.
Affected parameters are:
logtoconsole =
assemblypath = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powershell
.dll
logfile = C:\_dev\365SDK\SDK\Tools\PackageDeployer\PowerShell\Microsoft.Xrm.Tooling.PackageDeployment.Powershell.Inst
allLog
The Commit phase completed successfully.