XP Windows Installer Problems ?

Is there a known issue with Windows Installer for XP SP2 systems ?

New build XP SP2 MCE machine

Problem is consistently repeatable failure to install any third party application software which uses Installshield i.e. most everything

During the configuring Windows Installer process, the progress bar halts half way across and error code 1628 is reported (task manager shows the installer application as still running O.K.)

Some software applications, particularly legacy programs using dedicated installers (e.g. WISE) install and run with no problem – it seems that anything trying to install via XP’s installer is doomed to failure ?

Surely this must be a known issue – anyone help please ?