Vista - Gothic 2 not installing under vista home premium 32 bit

Hi guys. I am having a problem getting this game installed. When I try to
install the game it tells me there's insufficient memory. But my 2 hard drive
partitions have 35 and 42 gig respectively and I have a pagefile of 4345mb
and 2 gig of ram which when trying to install gothic 2 is about 50% free.

My system specifications are:
Aopen 700 psu
intel core2duo e6400
asus p5n32 e sli bios 1002
2x1 gig ddr 2 800 mhz team extreem memory
1x 250 gig seagate baracuda sata 2 drive split into 2 partitions
nvidia 8800 gts 640 mb driver 158.42
soundmax addon soundcard
windows vista home premium 32bit