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I forgot to mention in my first post that I did turn off all programs, after trying to install it the first time. I had Zone Alarm and McAfee Online running during first install attempt. It came back with the aforementioned error message. I turned them off and did ctrl-alt-del to make sure the only two items running were Explorer and Systray. This is when I did the 'continue with installation' and 'restart from beginning' but to no avail.
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