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i actually had what is likely a similar issue today trying to install ADP's payroll client...
it relies on .net 2.0, but the install would fail with an error 1603 i think. The solution is to completely un-install .net version 4, then install whatever program relies on 2.0, then reinstall version 4.
.net 4 is new, and seems like it was released a bit too soon.
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