OK!
This problem occurs in all applications in all environments such as Windows XP, Amiga, and Windows 7. I have only my current computer with Windows 7 64bit to relate to the problem. After following all the suggestions to cure the problem with no success, I read the error message which was indicating the MSI was being read from C:\Windows\Installer. There is no such MSI placed in that directory. SO to solve the problem you must place whatever Apple msi installation giving the error message in the C:\Windows\Installer directory. Just drop it directly in the directory. Do not use any sub directory. If your don't have a copy of the MSI, you can extract it from the EXE installation file with a program like WinRar. My problem was with iTunes so the install dump looked like this C:\Windows\Installer\iTunes64.msi. Run the MSI or the original download from Apple. This worked for me as expected so you give it a try.