1 - Navigate to "Services and Applications" in Computer Management. (right click on Computer and click Manage) DO THIS UNDER LOGIN WITH ADMINISTRATOR RIGHTS.
2 - Expand the Services and Applications
3 - Click on Services
4 - In the right side of window sort by Name and go down to Windows Installer. By default the start up type will be set to Manual. (You will notice that the status will read 'Started' even though you know that it is not really running)
5 - Right click on it and select properties
6 - In the middle of the popup box you will see Startup Type. Use the drop down arrow and select 'Disabled' and click apply.
7 - Close out and reboot. The service is now set to disabled so on reboot it will not still think it has been started. Now follow the above steps again and select 'Manual' and click apply and close out the Computer Management screen.
Now you can run the installation of whatever software you were attempting to run when you were receiving the error.