uninstall it completely, turn off all unneccessary processes in task manager, start the installation again with the printer completely disconnected. Plug the printer in only when the printer software asks you too. The add new hardware wizard sometimes comes up which the driver installation is designed to stop, sometimes it does and sometimes it doesn't, if it doesn't cancel the add new hardware wizard, make sure you do.
From my experience with the installation of this printer (5 times to install correctly) it's one of the fussiest around for installation procedure.
Have done all what you said but still will not install correctly,What I have notised is an error box which says that Kontiki is not properly installed please reinstall the application. but where do I find it.