Everything I'm reading on this error points to a permissions problem in a temp directory.
Change permissions for the C:\WINDOWS\Installer or C:\WINNT\Installer folder, the C:\TEMP or C:\WINDOWS\TEMP and TEMP\Installer directories to allow SYSTEM and the current user Full Control:
Open Windows Explorer. Browse to your C:\Windows or C:\WINNT folder.
Go to the Tools > Options menu, and select View. Select 'Show hidden files and folders' radio button, and uncheck the 'Hide protected operating system files' checkbox.
If you are on Windows XP, you may also have to disable 'Simple file sharing (recommended)' to see the Security tab in the next step.
Right-click on the Installer folder and choose Properties. Click the Security tab.
Verify that the following permissions are set and that these user groups are listed:
ADMINISTRATORS group:
Full control (all boxes checked)
EVERYONE group:
Read & Execute
List Folder Contents
Read
SYSTEM group:
Full control (all boxes checked)
If one of these user groups is not listed, you may have to ADD it by clicking the Add button in the upper-right corner of the Security Properties dialog box.
Make sure the checkbox at the bottom of the Security Properties dialog box, marked 'Allow inheritable permissions from parent to propagate to this object' is checked.
Follow the above steps for C:\TEMP, WINDOWS/TEMP or WINNT/TEMP.
If the file named in the error message does exist in the folder that is listed in the error message, make sure that it is not set as 'read-only'. To do this, right-click on the file, and choose Properties. Verify that the 'read-only' property is unchecked.
Hope this helps