I couldn't get the game to install - here's what worked for me:

1) shut down all programs you can running in the background
2) disconnected from the internet
3) turned off Norton Internet Security and Antivirus
4) uninstalled Windows Installer 3.1 (through Control Panel - Add / Remove Programs)
5) install worked with no problems

I've had problems with Windows Installer 3.1 before (Kodak Easysoft). It will reinstall automatically by itself if you have Auto Updates enables for Windows.