Hi,
Actually I checked the Microsoft website before going on this forum. As you mentioned earlier, I am the sole administrator on my PC. I gave full permissions to SYSTEM, and I am installing the software on my local drive not on the network. I even created a new file on the desktop, just in case the problem was with the program files, but I still end up each time with the same error 1603. I was thinking of doing a whole restore for the windows, but I wanted to make sure there was no other simpler ways to solve this.
Milad