I had this same error along time ago. Follow these steps to fix the problem :
1. Download this file :
http://download.microsoft.com/download/ ... repair.EXE
2. After it is downloaded, run it to update some of you system files, and press Yes to All when it asks you if you want to update the files.
3. After it is finished, try to install/play the game again, and start having some fun.
Good luck. Let me know of the outcome.
*Save this file in a safe location in case this error shows up again.*