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Did you run a FULL Windows update yet?
Microsoft Windows Update. If you did then try this version of installer:
Download details: Windows Installer 3.1 Redistributable - also, try registering and un-registering the installer like this;
Also, you can try unregistering and registering the installer.
Go to start > run and type in msiexec /unregserver and hit enter. The window will close.
Go to start > run again and type in msiexec /regserver and hit enter. The window will close again.
Then try installing your program.