Vista - Problems installing Flight Simulator X deluxe

I am trying to install Flight simulator on my computer but at the end of the 2nd disc I get the error message 1935. When I acknowledge, it starts rolling back action until error message 1603 pops up -feature transfer error. Through help and support I have gathered that I should download MSXML Core Services 4.0. When I try to do that, I get an error message stating " error opening installation log. Verify that specified log file location exists and is writable". As far as I can determined I have installed on my computer MSXML SP2 KB936181 and MSXML SP2 KB 941833.I hope this information is usefull and is sufficient. So far it has been a big disappointment and very frustrating.I have also rechecked all the technical specs to confirm that the game will work on my computer. I am running Vista Home premium OS.