.NET Framework 4.0 Full package installation failed with error code: (0x80070643)

I am getting an error when installing .net framework 4.0. I am using the full package installer.

OS: windows XP Service Pack 3

Windows Update: Current with all security updates.

Error:

[7/12/2010, 10:50:49]MSI (C:\eb1ddbb12a129b2fddde4054\netfx_Core_x86.msi) Installation failed. Msi Log: Microsoft .NET Framework 4 Setup_20100712_105014316-MSI_netfx_Core_x86.msi.txt

[7/12/2010, 10:50:49]PerformOperation returned 1603 (translates to HRESULT = 0x80070643)

[7/12/2010, 10:50:49] Action complete

[7/12/2010, 10:50:49]OnFailureBehavior for this item is to Rollback.

[7/12/2010, 10:50:49] Action: Performing actions on all Items...



[7/12/2010, 10:50:49] Action complete

[7/12/2010, 10:50:49] Action complete

[7/12/2010, 10:50:57]C:\eb1ddbb12a129b2fddde4054\netfx_Extended.mzz - Signature verified successfully for netfx_Extended.mzz

[7/12/2010, 10:50:57] C:\eb1ddbb12a129b2fddde4054\netfx_Extended.mzz Signature verified successfully for netfx_Extended.mzz

[7/12/2010, 10:50:57]Signature verification succeeded for netfx_Extended.mzz

[7/12/2010, 10:50:57]File C:\eb1ddbb12a129b2fddde4054\netfx_Extended.mzz, locked for install. 

[7/12/2010, 10:50:57]Verifying Digital Signatures: C:\eb1ddbb12a129b2fddde4054\netfx_Extended.mzz Success

[7/12/2010, 10:50:57]Final Result: Installation failed with error code: (0x80070643), "Fatal error during installation. " (Elapsed time: 0 00:00:44).

I have looked at other posts regarding this issue and none of the solutions seems solve my issue. I have run the collect.exe tool to collect information for a .net framework setup, but dont know where to upload the cab file.

Is there something i can do? I have not had any issues installing on a Virtual PC with the same OS and SP3.

Thanks