visual studio .net setup:

It's possible that there's something being loaded on the machine that's
causing the problem. Start with the basics. If this is Windows XP or 2003
Server use the MSCONFIG utility to disable all background programs and all
services except Windows Installer so you can do the installation:

1. Go to START, RUN and type MSCONFIG
2. On the General tab, click the Selective Startup option and then uncheck
the boxes underneath it that say "Load Startup Items" and "Load System
Services"
3. Click to the Services tab and click the column header labeled "Service"
to sort these alphabetically.
4. Scroll down in the list and check the box next to Windows Installer. You
may notice one or two other boxes still checked. This is normal.
5. Click APPLY and when the machine is finished, the OK button will say
CLOSED. Click that button and then restart the machine.
6. When the restart happens, click OK if a message comes up saying that you
have used the System Configuration Utility. If the System Configuration
Utility itself is on the screen after clicking this, click the red X in the
top right corner to dismiss the utility. If you receive a message saying
that you need to restart the machine, click the button that says EXIT
WITHOUT RESTART.
7. When you are ready to restore the system to normal, go to START, RUN and
type MSCONFIG and on the General tab, click the Normal startup option, then
click APPLY and CLOSE and restart the machine.

Will Buffington
Microsoft Developer Support