.NET Framework Redistributable Installation fails

I've created a C# application that I packaged into a setup.msi file. The setup has two launch conditions, it checks for the .NET Framework 1.1 and MDAC version 2.6 or higher, and I installed the .NET Framework Bootstrapper plug-in on my computer. When I try to install the application the installer fails with the message, "The installer was interrupted before Setup could be installed. You need to restart the installer to try again."

I used msiexec to create a verbose log and here are my results. Does anyone know what the problem is because it's going to be a hassle to have all my users manually install the .NET Framework and MDAC.

=== Verbose logging started: 4/23/2005 10:38:34 Build type: SHIP UNICODE 2.00.2600.1183 Calling process: C:\WINNT\system32\msiexec.exe ===
MSI (c) (D0:AC): Resetting cached policy values
MSI (c) (D0:AC): Machine policy value 'Debug' is 0
MSI (c) (D0:AC): ******* RunEngine:
******* Product: c:\Setup.msi
******* Action:
******* CommandLine: **********
MSI (c) (D0:AC): Machine policy value 'DisableUserInstalls' is 0
MSI (c) (D0:AC): Cloaking enabled.
MSI (c) (D0:AC): End dialog not enabled
MSI (c) (D0:AC): Original package ==> c:\Setup.msi
MSI (c) (D0:AC): Package we're running from ==> c:\DOCUME~1\jcooper\LOCALS~1\Temp\3e8a35.msi
MSI (c) (D0:AC): APPCOMPAT: looking for appcompat database entry with ProductCode '{1912C270-69A5-458E-AD58-3F5A7B070621}'.
MSI (c) (D0:AC): APPCOMPAT: no matching ProductCode found in database.
MSI (c) (D0:AC): Machine policy value 'TransformsSecure' is 0
MSI (c) (D0:AC): User policy value 'TransformsAtSource' is 0
MSI (c) (D0:AC): APPCOMPAT: looking for appcompat database entry with ProductCode '{1912C270-69A5-458E-AD58-3F5A7B070621}'.
MSI (c) (D0:AC): APPCOMPAT: no matching ProductCode found in database.
MSI (c) (D0:AC): Transforms are not secure.
MSI (c) (D0:AC): Command Line: CURRENTDIRECTORY=C:\WINNT\system32 CLIENTUILEVEL=0 CLIENTPROCESSID=464 %HOMEPATH=\Documents and Settings\jcooper %HOMEDRIVE=C: %HOMESHARE=\\cspstorage1\technologyusers$
MSI (c) (D0:AC): Product Code passed to Engine.Initialize: ''
MSI (c) (D0:AC): Product Code from property table before transforms: '{1912C270-69A5-458E-AD58-3F5A7B070621}'
MSI (c) (D0:AC): Product Code from property table after transforms: '{1912C270-69A5-458E-AD58-3F5A7B070621}'
MSI (c) (D0:AC): Product not registered: beginning first-time install
MSI (c) (D0:AC): Entering CMsiConfigurationManager::SetLastUsedSource.
MSI (c) (D0:AC): User policy value 'SearchOrder' is 'nmu'
MSI (c) (D0:AC): Adding new sources is allowed.
MSI (c) (D0:AC): Package name extracted from package path: 'Setup.msi'
MSI (c) (D0:AC): Package to be registered: 'Setup.msi'
MSI (c) (D0:AC): Note: 1: 2262 2: Error 3: -2147287038
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2729
MSI (c) (D0:AC): Note: 1: 2262 2: AdminProperties 3: -2147287038
MSI (c) (D0:AC): Machine policy value 'DisableMsi' is 0
MSI (c) (D0:AC): Machine policy value 'AlwaysInstallElevated' is 0
MSI (c) (D0:AC): User policy value 'AlwaysInstallElevated' is 0
MSI (c) (D0:AC): Running product '{1912C270-69A5-458E-AD58-3F5A7B070621}' with user privileges: It's not assigned.
MSI (c) (D0:AC): TRANSFORMS property is now:
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Application Data
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Favorites
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\NetHood
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\my documents
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\PrintHood
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Recent
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\SendTo
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Templates
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Application Data
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Local Settings\Application Data
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\my documents\My Pictures
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Start Menu\Programs\Administrative Tools
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Start Menu\Programs\Startup
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Start Menu\Programs
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Start Menu
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\jcooper\Desktop
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs\Administrative Tools
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs\Startup
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu\Programs
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Start Menu
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\Documents and Settings\All Users\Desktop
MSI (c) (D0:AC): SHELL32::SHGetFolderPath returned: C:\WINNT\Fonts
MSI (c) (D0:AC): Note: 1: 2898 2: MS Sans Serif 3: MS Sans Serif 4: 0 5: 16
MSI (c) (D0:AC): MSCOREE not loaded loading copy from system32
MSI (c) (D0:AC): Note: 1: 1402 2: HKEY_CURRENT_USER\Software\Microsoft\MS Setup (ACME)\User Info 3: 2
MSI (c) (D0:AC): Note: 1: 1402 2: HKEY_CURRENT_USER\Software\Microsoft\MS Setup (ACME)\User Info 3: 2
=== Logging started: 4/23/2005 10:38:35 ===
MSI (c) (D0:AC): Machine policy value 'DisableRollback' is 0
MSI (c) (D0:AC): User policy value 'DisableRollback' is 0
MSI (c) (D0:AC): Doing action: INSTALL
MSI (c) (D0:AC): Note: 1: 2262 2: ActionText 3: -2147287038
Action start 10:38:35: INSTALL.
MSI (c) (D0:AC): UI Sequence table 'InstallUISequence' is present and populated.
MSI (c) (D0:AC): Running UISequence
MSI (c) (D0:AC): Doing action: DIRCA_CheckFX
Action start 10:38:35: DIRCA_CheckFX.
MSI (c) (D0:AC): Creating MSIHANDLE (1) of type 790542 for thread 1708
Action ended 10:38:35: DIRCA_CheckFX. Return value 1.
MSI (c) (D0:AC): Skipping action: ERRCA_UIANDADVERTISED (condition is false)
MSI (c) (D0:AC): Doing action: AppSearch
Action start 10:38:35: AppSearch.
MSI (c) (D0:AC): Note: 1: 2262 2: Signature 3: -2147287038
MSI (c) (D0:AC): Note: 1: 2262 2: CompLocator 3: -2147287038
Action ended 10:38:35: AppSearch. Return value 1.
MSI (c) (D0:AC): Doing action: LaunchConditions
Action start 10:38:35: LaunchConditions.
Info 2898. VSI_MS_Sans_Serif13.0_0_0, MS Sans Serif, 0
DEBUG: Error 2835: The control ErrorIcon was not found on dialog ErrorDialog
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2835. The arguments are: ErrorIcon, ErrorDialog,
MSI (c) (D0:AC): Note: 1: 2262 2: Error 3: -2147287038
MSI (c) (D0:AC):
Action ended 10:38:38: LaunchConditions. Return value 3.
MSI (c) (D0:AC): Doing action: FatalErrorForm
Action start 10:38:38: FatalErrorForm.
DEBUG: Error 2826: Control Line1 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line1, to the right
DEBUG: Error 2826: Control Line2 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line2, to the right
DEBUG: Error 2826: Control BannerBmp on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, BannerBmp, to the right
Info 2898. VsdDefaultUIFont.524F4245_5254_5341_4C45_534153783400, MS Sans Serif, 0
Info 2898. VSI_MS_Sans_Serif16.0_1_0, MS Sans Serif, 0
Action ended 10:38:41: FatalErrorForm. Return value 1.
Action ended 10:38:41: INSTALL. Return value 3.
MSI (c) (D0:AC): Destroying RemoteAPI object.
=== Logging stopped: 4/23/2005 10:38:41 ===
MSI (c) (D0:AC): Note: 1: 1708
MSI (c) (D0:AC): Note: 1: 2262 2: Error 3: -2147287038
MSI (c) (D0:AC): Note: 1: 2262 2: Error 3: -2147287038
MSI (c) (D0:AC): Product: Test Management System -- Installation failed.

MSI (c) (D0:AC): Grabbed execution mutex.
MSI (c) (D0:AC): Cleaning up uninstalled install packages, if any exist
MSI (c) (D0:AC): MainEngineThread is returning 1603
=== Verbose logging stopped: 4/23/2005 10:38:41 ===

>From http://www.developmentnow.com/g/26_0_0_0_0_0/dotnet-framework-setup.htm

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