Software will not install,setup.exe prob.

[Madbob9]

I'm trying to install the game F.E.A.R.This problem I'm having occured with both the M/P demo(unresolved) and the retail CD's.
When I click install the Installshield banner pops up then I get the box saying "Setup.exe has encountered a problem and needs to close.I get no error code within that box.
The o.d. is able to read the disc since I can run the ReadMe.
In trying to solve this I've attempted to install in safe mode.
Tried after a Clean Boot(only Win. installer running).
Did an OS repair.Tried before reinstalling sp2 and the damn 28 updates.
Tried again in safe mode and clean boot.Same message.
And of course all these attempts were tried with security software disabled.
I also did try and install a couple of other games,which started install with no problems.
Since this also happened with the FEAR demo I'm sure there is no problem with CD's.
There seems to be something incompatable with this comp.and I have no clue.
Any suggestions would be appreciated.

XP Home Sp2
AMD 3500+ Venice 2.7gig XP-90
DFI NF4 Ultra 704-2bta
2x1024 OCZ 4000EB
ATI x800XL
Enermax 485W 2.0
WD 120 ata