Refer the following microsoft link for some information on this issue:
http://support.microsoft.com/kb/834484
First thing to make sure is to start with the installation in the Administrator account and also verify that theWindows Installer service is set to Automatic
Method 1: Verify that the Windows Installer service is set to Automatic
1.Click Start, type services.msc in the Start Search box, and then press ENTER.If you are prompted for an administrator password or for confirmation, type the password, or clickContinue.
2. In the Services list, double-click Windows Installer.
3. In the Windows Installer Properties dialog box, click Automatic in the Startup type list.
4. Click Start, click Apply, and then click OK.
5. Start the software installation.You may also do a compatibility check of the software with windows 7 on your computer.To do that you need to follow the link provided below. http://www.microsoft.com/windows/compatibility/windows-7/en-us/
If it is not compatible then you need to install it in compatibility mode and check for the issue to do that you need to follow the steps provided below.
1. Locate the installer.exe or setup.exe file in your file system and right-click on the file.
2. From the contextual menu, choose Properties > Compatibility.
3. Choose the version of Windows you want to emulate and select the “Run this program in compatibilitymode” checkbox. Run the installer.If you need further information on the above provided steps then you can follow the link provided below.
http://windows.microsoft.com/en-US/windows7/Make-older-programs-run-in-this-version-of-Windows
Method 2: Perform a clean startup and clear Temp folder
When you start Windows as usual, some programs start automatically and run in the background. Theseprograms may include antivirus programs and system programs that may interfere with productinstallation. When you perform a clean startup before you start the installation, you prevent theseprograms from starting automatically. To perform a clean startup, follow the appropriate steps for yourWindows version.
Method 3: Download latest windows installer .
I suggest you to download and install the latest version of windows installer and then try installing theupdates.To download windows installer click on the link below:
http://www.microsoft.com/downloads/details.aspx?FamilyID=5a58b56f-60b6-4412-95b9-54d056d6f9f4&DisplayLang=en