It's an MS knowledgebase article, it's not the exact match of your message, but it does refer to error 1606 and installing new software.
It suggests a few remedies.
Do you have Norton AntiVirus 2003 installed? As "This behavior may also be caused by Norton AntiVirus 2003. For more information about this behavior and for steps that you can take to resolve the problem, visit the following Symantec Web site:" it gives you a direct link to the poss. solution.
Hope this helps.
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