.Net Framework 2.0 Fails Installation

I am having extreme difficulty trying to install VB 2005 Express Edition. The software appears to install ok until near the end when the log shows the 1603 error. I am running winxp on a Inspiron 6000. .Net Framework 1.1 is installed, but I have read should not prevent 2.0 install. .Net framework 2.0 beta has not been installed and there is no evidence that it has. The failure seems to be in the .Net Framework 2.0 installation. It fails due to an internal exception during install operation: 0xc000001d at 0x746A8C34 (See Log). I think the "1D" error is STATUS _ILLEGAL_INSTRUCTION. I have tried numerous things I saw in other posts to resolve but to no avail. Can anyone help me figure out what is going on.

I have tried

1. Renaming MSCOREE.DLL

2. A clean boot eliminating system.ini, win.ini, startup items, and services

3. Shutting off Norton Antivirus

4. Cleaned Registry to eliminate 2.0 beta entries (none found)

5. Downloaded .Net Framework 2.0 directly from Microsoft and tried to install on its own. It fails when I advance to the EULA window. The window just disappears before i can accept and the installation does'nt go anywhere.

I have had trouble installing other software as well where installs just fail. I am pretty sure I am log into an administrators account. The account name is computer administor .

The following is the dd_netfx log

=== Verbose logging started: 3/24/2006 10:55:58 Build type: SHIP UNICODE 3.01.4000.2435 Calling process: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\install.exe ===
MSI (c) (B4:0C) [10:55:58:562]: SOFTWARE RESTRICTION POLICY: Verifying package --> 'C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi' against software restriction policy
MSI (c) (B4:0C) [10:55:58:562]: SOFTWARE RESTRICTION POLICY: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi has a digital signature
MSI (c) (B4:0C) [10:55:58:937]: SOFTWARE RESTRICTION POLICY: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi is permitted to run at the 'unrestricted' authorization level.
MSI (c) (B4:0C) [10:55:58:937]: Cloaking enabled.
MSI (c) (B4:0C) [10:55:58:937]: Attempting to enable all disabled priveleges before calling Install on Server
MSI (c) (B4:0C) [10:55:58:953]: End dialog not enabled
MSI (c) (B4:0C) [10:55:58:953]: Original package ==> C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi
MSI (c) (B4:0C) [10:55:58:953]: Package we're running from ==> C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi
MSI (c) (B4:0C) [10:55:58:984]: APPCOMPAT: looking for appcompat database entry with ProductCode '{7131646D-CD3C-40F4-97B9-CD9E4E6262EF}'.
MSI (c) (B4:0C) [10:55:58:984]: APPCOMPAT: no matching ProductCode found in database.
MSI (c) (B4:0C) [10:55:58:984]: MSCOREE not loaded loading copy from system32
MSI (c) (B4:0C) [10:55:58:984]: Machine policy value 'TransformsSecure' is 0
MSI (c) (B4:0C) [10:55:58:984]: User policy value 'TransformsAtSource' is 0
MSI (c) (B4:0C) [10:55:58:984]: Machine policy value 'DisablePatch' is 0
MSI (c) (B4:0C) [10:55:58:984]: Machine policy value 'AllowLockdownPatch' is 0
MSI (c) (B4:0C) [10:55:58:984]: Machine policy value 'DisableLUAPatching' is 0
MSI (c) (B4:0C) [10:55:58:984]: Machine policy value 'DisableFlyWeightPatching' is 0
MSI (c) (B4:0C) [10:55:58:984]: APPCOMPAT: looking for appcompat database entry with ProductCode '{7131646D-CD3C-40F4-97B9-CD9E4E6262EF}'.
MSI (c) (B4:0C) [10:55:58:984]: APPCOMPAT: no matching ProductCode found in database.
MSI (c) (B4:0C) [10:55:58:984]: Transforms are not secure.
MSI (c) (B4:0C) [10:55:58:984]: No Command Line.
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2205 2: 3: Control
MSI (c) (B4:0C) [10:55:58:984]: PROPERTY CHANGE: Adding PackageCode property. Its value is '{BFC5E8EF-C140-454A-9B47-EEC73A4AAB3F}'.
MSI (c) (B4:0C) [10:55:58:984]: Product Code passed to Engine.Initialize: '(none)'
MSI (c) (B4:0C) [10:55:58:984]: Product Code from property table before transforms: '{7131646D-CD3C-40F4-97B9-CD9E4E6262EF}'
MSI (c) (B4:0C) [10:55:58:984]: Product Code from property table after transforms: '{7131646D-CD3C-40F4-97B9-CD9E4E6262EF}'
MSI (c) (B4:0C) [10:55:58:984]: Product not registered: beginning first-time install
MSI (c) (B4:0C) [10:55:58:984]: PROPERTY CHANGE: Adding ProductState property. Its value is '-1'.
MSI (c) (B4:0C) [10:55:58:984]: Entering CMsiConfigurationManager::SetLastUsedSource.
MSI (c) (B4:0C) [10:55:58:984]: User policy value 'SearchOrder' is 'nmu'
MSI (c) (B4:0C) [10:55:58:984]: Adding new sources is allowed.
MSI (c) (B4:0C) [10:55:58:984]: PROPERTY CHANGE: Adding PackagecodeChanging property. Its value is '1'.
MSI (c) (B4:0C) [10:55:58:984]: Package name extracted from package path: 'netfx.msi'
MSI (c) (B4:0C) [10:55:58:984]: Package to be registered: 'netfx.msi'
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:58:984]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2729
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2262 2: AdminProperties 3: -2147287038
MSI (c) (B4:0C) [10:55:59:000]: Machine policy value 'DisableMsi' is 0
MSI (c) (B4:0C) [10:55:59:000]: Machine policy value 'AlwaysInstallElevated' is 0
MSI (c) (B4:0C) [10:55:59:000]: User policy value 'AlwaysInstallElevated' is 0
MSI (c) (B4:0C) [10:55:59:000]: Product installation will be elevated because user is admin and product is being installed per-machine.
MSI (c) (B4:0C) [10:55:59:000]: Running product '{7131646D-CD3C-40F4-97B9-CD9E4E6262EF}' with elevated privileges: Product is assigned.
MSI (c) (B4:0C) [10:55:59:000]: TRANSFORMS property is now:
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding VersionDatabase property. Its value is '200'.
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Application Data
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Favorites
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\NetHood
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\My Documents
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\PrintHood
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Recent
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\SendTo
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Templates
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Application Data
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Local Settings\Application Data
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\My Documents\My Pictures
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs\Administrative Tools
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs\Startup
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Desktop
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Start Menu\Programs\Administrative Tools
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Start Menu\Programs\Startup
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Start Menu\Programs
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Start Menu
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\Jim Groleau\Desktop
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Templates
MSI (c) (B4:0C) [10:55:59:000]: SHELL32::SHGetFolderPath returned: C:\WINDOWS\Fonts
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2898 2: MS Sans Serif 3: MS Sans Serif 4: 0 5: 16
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding Privileged property. Its value is '1'.
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding USERNAME property. Its value is ' '.
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding COMPANYNAME property. Its value is ' '.
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding DATABASE property. Its value is 'C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi'.
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding OriginalDatabase property. Its value is 'C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi'.
=== Logging started: 3/24/2006 10:55:59 ===
MSI (c) (B4:0C) [10:55:59:000]: Note: 1: 2262 2: PatchPackage 3: -2147287038
MSI (c) (B4:0C) [10:55:59:000]: Machine policy value 'DisableRollback' is 0
MSI (c) (B4:0C) [10:55:59:000]: User policy value 'DisableRollback' is 0
MSI (c) (B4:0C) [10:55:59:000]: PROPERTY CHANGE: Adding UILevel property. Its value is '2'.
MSI (c) (B4:0C) [10:55:59:000]: MsiOpenPackageEx is returning 0
MSI (c) (B4:0C) [10:55:59:000]: MsiOpenPackage is returning 0
=== Verbose logging stopped: 3/24/2006 10:55:59 ===

=== Verbose logging started: 3/24/2006 10:55:59 Build type: SHIP UNICODE 3.01.4000.2435 Calling process: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\install.exe ===
MSI (c) (B4:54) [10:55:59:015]: Resetting cached policy values
MSI (c) (B4:54) [10:55:59:015]: Machine policy value 'Debug' is 0
MSI (c) (B4:54) [10:55:59:015]: ******* RunEngine:
******* Product: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi
******* Action:
******* CommandLine: **********
MSI (c) (B4:54) [10:55:59:015]: Client-side and UI is none or basic: Running entire install on the server.
MSI (c) (B4:54) [10:55:59:015]: Grabbed execution mutex.
MSI (c) (B4:54) [10:55:59:015]: Cloaking enabled.
MSI (c) (B4:54) [10:55:59:015]: Attempting to enable all disabled priveleges before calling Install on Server
MSI (c) (B4:54) [10:55:59:015]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (9C:30) [10:55:59:078]: Grabbed execution mutex.
MSI (s) (9C:FC) [10:55:59:093]: Resetting cached policy values
MSI (s) (9C:FC) [10:55:59:093]: Machine policy value 'Debug' is 0
MSI (s) (9C:FC) [10:55:59:093]: ******* RunEngine:
******* Product: C:\DOCUME~1\JIMGRO~1\LOCALS~1\Temp\IXP000.TMP\netfx.msi
******* Action:
******* CommandLine: **********
MSI (s) (9C:FC) [10:55:59:093]: Machine policy value 'DisableUserInstalls' is 0
MSI (s) (9C:FC) [10:55:59:109]: Internal Exception during install operation: 0xc000001d at 0x746A8C34.
MSI (s) (9C:FC) [10:55:59:109]: WER report disabled for silent install.
MSI (s) (9C:FC) [10:55:59:109]: Internal MSI error. Installer terminated prematurely.

MSI (s) (9C:FC) [10:55:59:140]: MainEngineThread is returning 1603
Unexpected Termination
MSI (c) (B4:54) [10:55:59:140]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (c) (B4:54) [10:55:59:156]: MainEngineThread is returning 1603
=== Verbose logging stopped: 3/24/2006 10:55:59 ===