Never seen that error message before. Lets try reinstalling Windows Installer:
1/ Click the Start button
2/ From the Start menu click Run
3/ In the Run dialog box type: cmd and press Return
4/ The Command Prompt window will now appear
5/ In the Command Prompt window type the following pressing Return after each entry:
attrib -r -s -h
c:\windows\system32\dllcache
cd c:\windows\system32\
ren msi.dll msi.old
ren msiexec.exe msiexec.old
ren msihnd.dll msihnd.old
exit
6/ After Exiting from the Command Window Reboot your PC
7/ The Windows Installer should now automatically be reinstalled.