One of our users contacted Microsoft regarding this problem and here is their answer:
The issue can be caused by the security programs installed on the computer or the incorrect permission settings. Let's perform the following steps to check the results:
Step 1: Disable firewalls, antivirus or other Internet browser programs
The following programs can affect Windows Vista SP1 installation and I suggest we disable or even uninstall them:
CA Internet Suite Firewall
Norton Internet Security
If you have any other similar programs, please also temporarily disable or uninstall it to test the issue. Please understand that we are disabling these programs only for the purpose of troubleshooting and we can re-enable these programs after we finish troubleshooting.
To protect the computer during the troubleshoot process, I suggest turning on the Windows Firewall. Here are the detailed steps to do so:
1. Click the Start Button, in "Start Search", type "firewall.cpl" (without quotes) then press enter. This will generate the Windows Firewall application.
2. In the Windows Firewall window, Click "Turn Windows Firewall on or off" from the left panel. If you are prompted for an administrator password or confirmation, type the password or provide confirmation.
3. Select "On (recommended)", and then click OK.
After that, please check if Windows Vista SP1 can be successfully installed. If the issue persists, please use the following steps to check the permissions:
Step 2: Reset the permissions
1. Please download the subinacl.msi file from the following link and save the installation patch on the Desktop:
http://www.microsoft.com/downloads/deta ... yDownloads
2. Please go to the Desktop and double click the downloaded file.
3. Please select the C:\Windows\System32 folder as the Destination Folder during the installation. Later we will use this tool to reset the permission settings on the current machine.
Note: If UAC (User Account Control) window is prompted for permission to continue, please click "Continue".
4. Click "Start". In the Start Search bar, type: "notepad" (without quotes) and press Enter.
5. Copy the following commands and then paste them into the opened Notepad window:
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=administrators=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=administrators=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=administrators=f
subinacl /subdirectories %SystemDrive% /grant=administrators=f
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=system=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=system=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=system=f
subinacl /subdirectories %SystemDrive% /grant=system=f
6. After pasting the above commands, please close the Notepad window. Choose Save when you are prompted to save the file. Type "reset.bat" as the file name and choose Desktop from the left panel as the save location.
7. Refer to the Desktop and right click the reset.bat file, then choose "Run as administrator."
8. You will see a DOS-like window processing.
NOTE: It may take several minutes. When it is finished, you will be prompted with the message: "Finished, press any key to continue".