I have been digging into this problem extensively as well and have come to discover that one of our group policies is causing this error. When I remove the group policy the install goes just fine, when I re-apply the group policy the install fails with the same error code. On the end user machine run gpresult /v and it should tell you what group policies (if any) are being applied. For my issue, I have discovered that it is the group policy, but not what part of the group policy specifically as there are a number of things that are being applied. If you sign into a test computer as an admin, does the install succeed?