I’m partly blogging this because it’ll serve as an aide-memoire when I next have this problem and can’t remember how I fixed it.
I don’t know the root cause, but there’s a bug in the 3.0 and 3.5 installers for the .NET framework. For me, I was getting the Windows XP error reporting showing up. This happened when installing from the standalone installer as well as running the Visual Studio 2008 installation.
When poring through the log files that XP’s error reporting was planning to send to Micro$oft, I spotted the following:
“Microsoft .NET Framework 3.0 has encountered a problem during setup. Setup did not complete correctly.”
“Windows Communication Foundation:  Error: Installation failed for component Windows Communication Foundation. MSI returned error code 1603”
“Error 1402.Could not open key: HKEY_LOCAL_MACHINESYSTEMCurrentControlSetServicesEventlogSecurityServiceModel 126.96.36.199. System error 5. Verify that you have sufficient access to that key, or contact your support personnel.”
I’m running as administrator (I know, I know, I shouldn’t be), so this was strange. Still, it took adding Everyone with Full access to that registry key for the setup to work. Now 3.0 and 3.5 and Visual Studio install okay.
Here’s a couple of links that helped me out:
Phew! You didn’t get this trouble with notebook and pen…