Can't Install. An error occurred while installing Adobe AIR

I can't install Adobe AIR. I'm getting the infamous error:
"An error occurred while installing Adobe AIR. Installation may not be allowed by your administrator. Please contact your administrator."
I'm the administrator of the computer.
I'm running Windows 7 Ultimate 32-bit.
I've tried the right-click-run-as-administrator solution and I'm getting the same error.
I've read Troubleshoot AIR installation | Windows and none of the solutions worked.
I'm installing the latest AIR version (I've tried older versions too)
I've tried Microsoft Install and Uninstall Fix It and AIR doesn't appear on the list of programs.
Here is my install log:
[2012-04-13:11:31:20] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86
[2012-04-13:11:31:20] Commandline is:
[2012-04-13:11:31:20] No installed runtime detected
[2012-04-13:11:31:42] Relaunching with elevation
[2012-04-13:11:31:42] Launching subprocess with commandline c:\users\mmazza\appdata\local\temp\aira62d.tmp\adobe air installer.exe -ei
[2012-04-13:11:31:42] Runtime Installer begin with version 3.2.0.2070 on Windows 7 x86
[2012-04-13:11:31:42] Commandline is: -stdio \\.\pipe\AIR_5604_0 -ei
[2012-04-13:11:31:42] No installed runtime detected
[2012-04-13:11:31:43] Starting silent runtime install. Installing runtime version 3.2.0.2070
[2012-04-13:11:31:43] Installing msi at c:\users\mmazza\appdata\local\temp\aira62d.tmp\setup.msi with guid {47FA2C44-D148-4DBC-AF60-B91934AA4842}
[2012-04-13:11:31:45] Error occurred during msi install operation; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
[2012-04-13:11:31:45] Rolling back install of c:\users\mmazza\appdata\local\temp\aira62d.tmp\setup.msi
[2012-04-13:11:31:45] Rollback complete
[2012-04-13:11:31:45] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
[2012-04-13:11:31:45] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
[2012-04-13:11:31:45] Runtime Installer end with exit code 7
[2012-04-13:11:31:47] Runtime Installer end with exit code 7
Hope someone can help. Thanks.

Chris, thanks for your help. Here's the log:
=== Logging started: 4/16/2012  11:16:05 ===
Action start 11:16:05: INSTALL.
Action start 11:16:05: FindRelatedProducts.
Action ended 11:16:05: FindRelatedProducts. Return value 1.
Action start 11:16:05: ValidateProductID.
Action ended 11:16:05: ValidateProductID. Return value 1.
Action start 11:16:05: SetSHAREDADDINFOLDER.
Action ended 11:16:05: SetSHAREDADDINFOLDER. Return value 1.
Action start 11:16:05: CostInitialize.
Action ended 11:16:05: CostInitialize. Return value 1.
Action start 11:16:05: FileCost.
Action ended 11:16:05: FileCost. Return value 1.
Action start 11:16:05: CostFinalize.
Action ended 11:16:06: CostFinalize. Return value 1.
Action start 11:16:06: MigrateFeatureStates.
Action ended 11:16:06: MigrateFeatureStates. Return value 0.
Action start 11:16:06: InstallValidate.
Action ended 11:16:06: InstallValidate. Return value 1.
Action start 11:16:06: SetARPINSTALLLOCATION.
Action ended 11:16:06: SetARPINSTALLLOCATION. Return value 1.
Action start 11:16:06: InstallInitialize.
Action ended 11:16:07: InstallInitialize. Return value 1.
Action start 11:16:07: ProcessComponents.
Action ended 11:16:07: ProcessComponents. Return value 1.
Action start 11:16:07: UnpublishFeatures.
Action ended 11:16:07: UnpublishFeatures. Return value 1.
Action start 11:16:07: RemoveRegistryValues.
Action ended 11:16:07: RemoveRegistryValues. Return value 1.
Action start 11:16:07: RemoveDuplicateFiles.
Action ended 11:16:07: RemoveDuplicateFiles. Return value 1.
Action start 11:16:07: RemoveFiles.
Action ended 11:16:07: RemoveFiles. Return value 0.
Action start 11:16:07: InstallFiles.
Action ended 11:16:07: InstallFiles. Return value 1.
Action start 11:16:07: DuplicateFiles.
Action ended 11:16:07: DuplicateFiles. Return value 1.
Action start 11:16:07: WriteRegistryValues.
Action ended 11:16:07: WriteRegistryValues. Return value 1.
Action start 11:16:07: RegisterUser.
Action ended 11:16:07: RegisterUser. Return value 1.
Action start 11:16:07: RegisterProduct.
Action ended 11:16:07: RegisterProduct. Return value 1.
Action start 11:16:07: PublishFeatures.
Action ended 11:16:07: PublishFeatures. Return value 1.
Action start 11:16:07: PublishProduct.
Action ended 11:16:07: PublishProduct. Return value 1.
Action start 11:16:07: InstallExecute.
MSI (s) (EC:04) [11:16:09:069]: Product: Adobe AIR -- Error 1402. Could not open key: HKEY_LOCAL_MACHINE\SOFTWARE\Classes\.air\OpenWithProgids.  System error 5.  Verify that you have sufficient access to that key, or contact your support personnel.
Error 1402. Could not open key: HKEY_LOCAL_MACHINE\SOFTWARE\Classes\.air\OpenWithProgids.  System error 5.  Verify that you have sufficient access to that key, or contact your support personnel.
Action ended 11:16:09: InstallExecute. Return value 3.
Action ended 11:16:10: INSTALL. Return value 3.
Property(S): ARPINSTALLLOCATION = c:\Program Files\Common Files\Adobe AIR\
Property(S): SHAREDADDINFOLDER = c:\Program Files\Adobe\Flash Player\AddIns\airappinstaller\
Property(S): UpgradeCode = {8DA920D5-C41C-42E0-BF31-87BA49984EE4}
Property(S): UC8DA920D5C41C42E0BF3187BA49984EE4 = {FDB3B167-F4FA-461D-976F-286304A57B2A}
Property(S): Resources = c:\Program Files\Common Files\Adobe AIR\Versions\1.0\Resources\
Property(S): Version = c:\Program Files\Common Files\Adobe AIR\Versions\1.0\
Property(S): Versions = c:\Program Files\Common Files\Adobe AIR\Versions\
Property(S): AIR = c:\Program Files\Common Files\Adobe AIR\
Property(S): CommonFilesFolder = c:\Program Files\Common Files\
Property(S): TARGETDIR = c:\
Property(S): SourceDir = c:\users\mmazza\appdata\local\temp\air5438.tmp\
Property(S): Manufacturer = Adobe Systems Incorporated
Property(S): ProductCode = {47FA2C44-D148-4DBC-AF60-B91934AA4842}
Property(S): ProductLanguage = 1033
Property(S): ProductName = Adobe AIR
Property(S): ProductVersion = 3.2.0.2070
Property(S): REINSTALLMODE = amus
Property(S): ARPSYSTEMCOMPONENT = yes
Property(S): REBOOT = Suppress
Property(S): ALLUSERS = 1
Property(S): SecureCustomProperties = ARPSYSTEMCOMPONENT;REINSTALLMODE;SHAREDADDINFOLDER;UC8DA920D5C41C42E0BF3187BA49984EE4
Property(S): MsiLogFileLocation = C:\Users\mmazza\AppData\Local\Temp\MSI46b03.LOG
Property(S): PackageCode = {496CC99A-E905-4C30-B3F0-14CB137CACAC}
Property(S): ProductState = -1
Property(S): PackagecodeChanging = 1
Property(S): CURRENTDIRECTORY = C:\Users\mmazza\Downloads
Property(S): CLIENTUILEVEL = 3
Property(S): MSICLIENTUSESEXTERNALUI = 1
Property(S): CLIENTPROCESSID = 1156
Property(S): VersionDatabase = 200
Property(S): VersionMsi = 5.00
Property(S): VersionNT = 601
Property(S): WindowsBuild = 7600
Property(S): ServicePackLevel = 0
Property(S): ServicePackLevelMinor = 0
Property(S): MsiNTProductType = 1
Property(S): WindowsFolder = c:\Windows\
Property(S): WindowsVolume = c:\
Property(S): SystemFolder = C:\Windows\system32\
Property(S): System16Folder = C:\Windows\system\
Property(S): RemoteAdminTS = 1
Property(S): TempFolder = C:\Users\mmazza\AppData\Local\Temp\
Property(S): ProgramFilesFolder = C:\Program Files\
Property(S): AppDataFolder = C:\Users\mmazza\AppData\Roaming\
Property(S): FavoritesFolder = C:\Users\mmazza\Favorites\
Property(S): NetHoodFolder = C:\Users\mmazza\AppData\Roaming\Microsoft\Windows\Network Shortcuts\
Property(S): PersonalFolder = C:\Users\mmazza\Documents\
Property(S): PrintHoodFolder = C:\Users\mmazza\AppData\Roaming\Microsoft\Windows\Printer Shortcuts\
Property(S): RecentFolder = C:\Users\mmazza\AppData\Roaming\Microsoft\Windows\Recent\
Property(S): SendToFolder = C:\Users\mmazza\AppData\Roaming\Microsoft\Windows\SendTo\
Property(S): TemplateFolder = C:\ProgramData\Microsoft\Windows\Templates\
Property(S): CommonAppDataFolder = C:\ProgramData\
Property(S): LocalAppDataFolder = C:\Users\mmazza\AppData\Local\
Property(S): MyPicturesFolder = C:\Users\mmazza\Pictures\
Property(S): AdminToolsFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Administrative Tools\
Property(S): StartupFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Startup\
Property(S): ProgramMenuFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\
Property(S): StartMenuFolder = C:\ProgramData\Microsoft\Windows\Start Menu\
Property(S): DesktopFolder = C:\Users\Public\Desktop\
Property(S): FontsFolder = C:\Windows\Fonts\
Property(S): GPTSupport = 1
Property(S): OLEAdvtSupport = 1
Property(S): ShellAdvtSupport = 1
Property(S): Intel = 6
Property(S): PhysicalMemory = 3325
Property(S): VirtualMemory = 4304
Property(S): AdminUser = 1
Property(S): MsiTrueAdminUser = 1
Property(S): LogonUser = mmazza
Property(S): UserSID = S-1-5-21-823518204-1563985344-842925246-12804
Property(S): UserLanguageID = 1033
Property(S): ComputerName = RGPROWS1015
Property(S): SystemLanguageID = 1033
Property(S): ScreenX = 1024
Property(S): ScreenY = 768
Property(S): CaptionHeight = 22
Property(S): BorderTop = 1
Property(S): BorderSide = 1
Property(S): TextHeight = 16
Property(S): TextInternalLeading = 3
Property(S): ColorBits = 32
Property(S): TTCSupport = 1
Property(S): Time = 11:16:10
Property(S): Date = 4/16/2012
Property(S): MsiNetAssemblySupport = 4.0.30319.1
Property(S): MsiWin32AssemblySupport = 6.1.7600.16385
Property(S): RedirectedDllSupport = 2
Property(S): MsiRunningElevated = 1
Property(S): Privileged = 1
Property(S): USERNAME = d
Property(S): DATABASE = c:\Windows\Installer\446fe3.msi
Property(S): OriginalDatabase = c:\users\mmazza\appdata\local\temp\air5438.tmp\setup.msi
Property(S): UILevel = 2
Property(S): ACTION = INSTALL
Property(S): ROOTDRIVE = c:\
Property(S): CostingComplete = 1
Property(S): OutOfDiskSpace = 0
Property(S): OutOfNoRbDiskSpace = 0
Property(S): PrimaryVolumeSpaceAvailable = 0
Property(S): PrimaryVolumeSpaceRequired = 0
Property(S): PrimaryVolumeSpaceRemaining = 0
Property(S): INSTALLLEVEL = 1
Property(S): SOURCEDIR = c:\users\mmazza\appdata\local\temp\air5438.tmp\
Property(S): SourcedirProduct = {47FA2C44-D148-4DBC-AF60-B91934AA4842}
Property(S): ProductToBeRegistered = 1
MSI (s) (EC:04) [11:16:10:707]: Product: Adobe AIR -- Installation failed.
MSI (s) (EC:04) [11:16:10:720]: Windows Installer installed the product. Product Name: Adobe AIR. Product Version: 3.2.0.2070. Product Language: 1033. Manufacturer: Adobe Systems Incorporated. Installation success or error status: 1603.
=== Logging stopped: 4/16/2012  11:16:10 ===
I've tried to delete the HKEY_LOCAL_MACHINE\SOFTWARE\Classes\.air\OpenWithProgids key, but I got the message "Cannot delete. Error while deleting key"

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