Try this. How to reset Internet Explorer settings http://support.microsoft.com/kb/923737Hi. reset internet explorer as Microsoft bulletin, twice and rebooted between each one, tried to install SP3 and still getting the same installation failed message.

GaryPlease do the following:

1. DOWNLOAD this diagnostics tool MGADiag.exe and SAVE this to your Desktop.
2. Double-click on MGADiag.exe and click Continue
3. When the program has finished, click on Copy
4. Post the results in your next reply.

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Also try Dial-a-fix.

Download Dial-a-Fix by djlizard, save it to the desktop then extract it to it's own folder.

• Open the folder and run Dial-a-fix.exe
• 2 windows will open. Close the one in the background labeled Restrictive Policies
• Check the BOX in section 1, Empty temp folders.
  
• Check the box in section 2, Fix Windows Installer.
  
• Check the box in section 3, Fix Windows Update.
  
• Check the box in section 4, labeled SSL/HTTPS/Cryptography. The 4 boxes under it should be pre-checked
  
• Check all boxes in section 5, labeled Registration Center.
  
• Click Go
  
• OK any error messages if received, but write them down and post them here.
• Restart the computer when done.