The SYSTEM account has not enough permissions on folders %temp% or %system%\Installer.
Grant full access to the folders %temp% or %system%\Installer for the SYSTEM account.
Method 1: Follow the steps below:
1. Go to Start.
2. Type %temp% in the search box and then click the Temp folder item that appears at the top.
3. At the top of the Explorer window, in the address bar, click the folder to the left of Temp in the folder path (that folder name is Local by default).
4. In the folder list, right-click the Temp folder and then click Properties and then click the Security tab.
5. Click the Edit button and on the next screen click Add.
6. On the next screen, in the large text window type Everyone and then click Check Names - Everyone should then be underlined.
7. Check the box for Full control under the Allow column, and then click OK, then OK again, and OK again to close all the windows.
8. Do the same steps for the folder %system%\Installer.
Method 2: Unregister and re-register the Windows Installer.
a. Click Start, click Run, type “msiexec /unregister” (without quotes), and then click OK (Note: Even if you do this correctly, it may look like nothing happened).
b. Click Start, click Run, type “msiexec /regserver” (without quotes), and then click OK (Note: Even if you do this correctly, it may look like nothing happened, or you may briefly see an hourglass).
c. Try to install the programs you wish to install and check.