Cannot install AIR 2.5 on Windows XP

After searching and reading in this forum for about an HOUR or so I still have no solution.
I've tried installing Adobe AIR 2.5, AIR 1.5, tried restarting the computer etc.
Nothing works.
I get a message similar to those posted by most users in this forum.
It says that there is an error and that I should make sure that I install it as administrator.
I already have administrator rights, of course!
Here is the content of the error log file:
[2010-10-27:09:34:59] Runtime Installer begin with version 2.5.0.16600 on Windows XP x86
[2010-10-27:09:34:59] Commandline is:
[2010-10-27:09:34:59] No installed runtime detected
[2010-10-27:09:35:03] Starting runtime install. Installing runtime version 2.5.0.16600
[2010-10-27:09:35:03] Installing msi at c:\dokume~1\XXXXX\lokale~1\temp\air49.tmp\setup.msi with guid {XXXXX-XXXXX-XXXXX-XXXXX-XXXXX}
[2010-10-27:09:35:07] Error occurred during msi install operation; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
[2010-10-27:09:35:07] Rolling back install of c:\dokume~1\XXXXX\lokale~1\temp\air49.tmp\setup.msi
[2010-10-27:09:35:07] Rollback complete
[2010-10-27:09:35:07] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
[2010-10-27:09:35:11] Runtime Installer end with exit code 7
Of course, I have the newest Windows updates etc.
I have also the newest Windows Installer.
So, what is the big secret?
Do I need to buy a new computer in order to install Adobe AIR?
(the computer I have is fairly new, despite XP installed on it)

I was finally able to install this POS.
Here is what I did:
I tried to install an even older version than 1.5
I went to filehippo.com and downloaded the oldest version I could find there which was the version 1.0.7
Here is the link to that page: http://www.filehippo.com/download_adobe_air/3853/
Thank God that old version installed on my computer.
After that the installation of current version (2.5) of this POS worked as well.

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    Here is a sanitized, excerpted section from the end of the install log (it is extremely long):
    [2010-10-07:06:35:21] UI SWF load is complete
    [2010-10-07:06:35:22] UI initialized
    [2010-10-07:06:35:22] Begin background update check
    [2010-10-07:06:35:22] Starting download from http://airdownload.adobe.com/air/3/background/windows/x86/patch/2.0.3.13070/update
    [2010-10-07:06:35:43] Background update successfully downloaded
    [2010-10-07:06:35:43] User notified of available background update
    [2010-10-07:06:35:50] User deferred installation of background update
    [2010-10-07:06:35:50] begin quitting
    [2010-10-07:12:53:18] UI SWF load is complete
    [2010-10-07:12:53:19] UI initialized
    [2010-10-07:12:53:19] Running C:\Users\Username\AppData\Roaming\Adobe\AIR\Updater\Background\updater -update "c:\program files (x86)\our wonderful product\our wonderful product.exe"
    [2010-10-07:12:53:19] begin quitting
    [2010-10-07:12:53:25] Performing runtime update
    [2010-10-07:12:53:25] UI SWF load is complete
    [2010-10-07:12:53:26] UI initialized
    [2010-10-07:12:53:26] starting user confirmation
    [2010-10-07:12:53:26] Version of this installer: 2.0.4.13090
    [2010-10-07:12:53:26] Installed version: 2.0.3.13070
    [2010-10-07:12:53:26] Installation type: patchNewer
    [2010-10-07:12:53:50] starting elevated install
    [2010-10-07:12:54:01] performing an elevated runtime install
    [2010-10-07:12:54:01] UI SWF load is complete
    [2010-10-07:12:54:01] starting install
    [2010-10-07:12:54:01] Scheduling runtime installation operations
    [2010-10-07:12:54:01] Active AIR product GUID is {B194272D-1F92-46DF-99EB-8D5CE91CB4EC}
    [2010-10-07:12:54:01] Scheduling an MSI repair operation
    [2010-10-07:12:54:01] Beginning runtime installation
    [2010-10-07:12:54:01] Beginning install
    [2010-10-07:12:54:01] Reinstalling c:\users\Username\appdata\local\temp\air834a.tmp\setup.msi
    [2010-10-07:12:54:10] Copying C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\airappinstaller.exe to C:\Users\Username\AppData\Local\Temp\fla4C92.tmp\temp
    [2010-10-07:12:54:11] Deleting C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\airappinstaller.exe
    [2010-10-07:12:54:11] Copying C:\Users\Username\appdata\local\temp\air834a.tmp\Adobe AIR\Versions\1.0\Resources\airappinstaller.exe to C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\airappinstaller.exe
    [2010-10-07:12:54:11] Copying C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\digest.s to C:\Users\Username\AppData\Local\Temp\fla4DBB.tmp\temp
    [2010-10-07:12:54:11] Deleting C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\digest.s
    [2010-10-07:12:54:11] Copying C:\Users\Username\appdata\local\temp\air834a.tmp\Adobe AIR\Versions\1.0\Resources\digest.s to C:\Users\Default\AppData\Roaming\Macromedia\Flash Player\www.macromedia.com\bin\airappinstaller\digest.s
    [2010-10-07:12:54:11] Execution complete; beginning commit phase
    [2010-10-07:12:54:11] Deleting C:\Users\Username\AppData\Local\Temp\fla4C92.tmp\temp
    [2010-10-07:12:54:11] Deleting C:\Users\Username\AppData\Local\Temp\fla4DBB.tmp\temp
    [2010-10-07:12:54:11] Commit complete
    [2010-10-07:12:54:11] install complete
    [2010-10-07:12:54:11] begin quitting
    [2010-10-07:12:54:11] Elevated install completed
    [2010-10-07:12:55:12] begin quitting
    [2010-10-07:12:55:12] attempting launch of our wonderful product
    [2010-10-07:12:55:44] UI SWF load is complete
    [2010-10-07:12:55:45] UI initialized
    [2010-10-07:12:55:46] IO Error 2032 during pingback request
    [2010-10-07:12:55:46] begin quitting
    [2010-10-07:13:11:11] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:11:11] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:13:11:11] Updating to version 1.0.8.2
    [2010-10-07:13:11:11] UI SWF load is complete
    [2010-10-07:13:11:12] UI initialized
    [2010-10-07:13:11:12] beginning UI styling
    [2010-10-07:13:11:12] UI styling complete
    [2010-10-07:13:11:13] Unpackaging to C:\Users\Username\AppData\Local\Temp\flaE586.tmp
    [2010-10-07:13:11:42] unpackaging/validation is complete
    [2010-10-07:13:11:42] application is bound to this version of the runtime
    [2010-10-07:13:11:42] app id com.example.ourproduct
    [2010-10-07:13:11:42] pub id
    [2010-10-07:13:11:42] Application located at c:\program files (x86)
    [2010-10-07:13:11:42] Waiting for user confirmation
    [2010-10-07:13:11:42] User confirmed action: install
    [2010-10-07:13:11:42] creating native installer in: C:\Users\Username\AppData\Local\Temp\fla572D.tmp
    [2010-10-07:13:12:01] native installer creation complete
    [2010-10-07:13:12:01] Starting install
    [2010-10-07:13:12:01] using conversion output in C:\Users\Username\AppData\Local\Temp\fla572D.tmp
    [2010-10-07:13:12:01] Beginning install
    [2010-10-07:13:12:01] Installing C:\Users\Username\AppData\Local\Temp\fla572D.tmp\setup.msi
    [2010-10-07:13:12:21] Error occurred; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:12:21] Rolling back install of C:\Users\Username\AppData\Local\Temp\fla572D.tmp\setup.msi
    [2010-10-07:13:12:21] Rollback due to error complete
    [2010-10-07:13:12:21] stateInstalling: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:12:21] stateInstallingWithElevation: enter install
    [2010-10-07:13:12:21] stateInstallingWithElevation: c:\Program Files (x86)\Common Files\Adobe AIR\Versions\1.0\Adobe AIR Application Installer -runtime "c:\Program Files (x86)\Common Files" -update -silent -logToStdout "c:\program files (x86)\our wonderful product\our wonderful product.exe" file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air 1.0.8.2
    [2010-10-07:13:12:41] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:12:41] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:13:12:41] Updating to version 1.0.8.2
    [2010-10-07:13:12:42] UI SWF load is complete
    [2010-10-07:13:12:43] UI initialized
    [2010-10-07:13:12:43] Unpackaging to C:\Users\Username\AppData\Local\Temp\fla461C.tmp
    [2010-10-07:13:13:09] unpackaging/validation is complete
    [2010-10-07:13:13:09] application is bound to this version of the runtime
    [2010-10-07:13:13:09] app id com.example.ourproduct
    [2010-10-07:13:13:09] subinstaller: pub id
    [2010-10-07:13:13:09] subinstaller: Application located at c:\program files (x86)
    [2010-10-07:13:13:09] creating native installer in: C:\Users\Username\AppData\Local\Temp\flaAC3F.tmp
    [2010-10-07:13:13:25] native installer creation complete
    [2010-10-07:13:13:25] Starting install
    [2010-10-07:13:13:25] using conversion output in C:\Users\Username\AppData\Local\Temp\flaAC3F.tmp
    [2010-10-07:13:13:25] Beginning install
    [2010-10-07:13:13:25] Installing C:\Users\Username\AppData\Local\Temp\flaAC3F.tmp\setup.msi
    [2010-10-07:13:13:38] Error occurred; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:13:38] Rolling back install of C:\Users\Username\AppData\Local\Temp\flaAC3F.tmp\setup.msi
    [2010-10-07:13:13:38] Rollback due to error complete
    [2010-10-07:13:13:38] stateInstalling: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:13:38] Failed during elevated install: error 0 1603
    [2010-10-07:13:13:44] application installer exiting
    [2010-10-07:13:14:39] Re-launching application from c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:14:39] starting cleanup of temporary files
    [2010-10-07:13:14:45] application installer exiting
    [2010-10-07:13:37:04] UI SWF load is complete
    [2010-10-07:13:37:05] UI initialized
    [2010-10-07:13:37:06] IO Error 2032 during pingback request
    [2010-10-07:13:37:06] begin quitting
    [2010-10-07:13:38:37] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:38:37] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:13:38:37] Updating to version 1.0.8.2
    [2010-10-07:13:38:37] UI SWF load is complete
    [2010-10-07:13:38:39] UI initialized
    [2010-10-07:13:38:39] beginning UI styling
    [2010-10-07:13:38:39] UI styling complete
    [2010-10-07:13:38:39] Unpackaging to C:\Users\Username\AppData\Local\Temp\fla621.tmp
    [2010-10-07:13:38:39] failed while unpackaging: [IOErrorEvent type="ioError" bubbles=false cancelable=false eventPhase=2 text="Error #2032" errorID=2032]
    [2010-10-07:13:39:51] Re-launching application from c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:39:51] starting cleanup of temporary files
    [2010-10-07:13:39:52] application installer exiting
    [2010-10-07:13:40:22] UI SWF load is complete
    [2010-10-07:13:40:25] UI initialized
    [2010-10-07:13:40:27] IO Error 2032 during pingback request
    [2010-10-07:13:40:27] begin quitting
    [2010-10-07:13:44:25] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:44:25] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:13:44:25] Updating to version 1.0.8.2
    [2010-10-07:13:44:25] UI SWF load is complete
    [2010-10-07:13:44:27] UI initialized
    [2010-10-07:13:44:27] beginning UI styling
    [2010-10-07:13:44:27] UI styling complete
    [2010-10-07:13:44:27] Unpackaging to C:\Users\Username\AppData\Local\Temp\fla5375.tmp
    [2010-10-07:13:44:44] unpackaging/validation is complete
    [2010-10-07:13:44:44] application is bound to this version of the runtime
    [2010-10-07:13:44:44] app id com.example.ourproduct
    [2010-10-07:13:44:44] pub id
    [2010-10-07:13:44:44] Application located at c:\program files (x86)
    [2010-10-07:13:44:44] Waiting for user confirmation
    [2010-10-07:13:44:44] User confirmed action: install
    [2010-10-07:13:44:44] creating native installer in: C:\Users\Username\AppData\Local\Temp\fla97C6.tmp
    [2010-10-07:13:45:02] native installer creation complete
    [2010-10-07:13:45:02] Starting install
    [2010-10-07:13:45:02] using conversion output in C:\Users\Username\AppData\Local\Temp\fla97C6.tmp
    [2010-10-07:13:45:02] Beginning install
    [2010-10-07:13:45:02] Installing C:\Users\Username\AppData\Local\Temp\fla97C6.tmp\setup.msi
    [2010-10-07:13:45:08] Error occurred; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:45:08] Rolling back install of C:\Users\Username\AppData\Local\Temp\fla97C6.tmp\setup.msi
    [2010-10-07:13:45:08] Rollback due to error complete
    [2010-10-07:13:45:08] stateInstalling: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:45:08] stateInstallingWithElevation: enter install
    [2010-10-07:13:45:08] stateInstallingWithElevation: c:\Program Files (x86)\Common Files\Adobe AIR\Versions\1.0\Adobe AIR Application Installer -runtime "c:\Program Files (x86)\Common Files" -update -silent -logToStdout "c:\program files (x86)\our wonderful product\our wonderful product.exe" file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air 1.0.8.2
    [2010-10-07:13:45:19] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:45:19] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:13:45:19] Updating to version 1.0.8.2
    [2010-10-07:13:45:20] UI SWF load is complete
    [2010-10-07:13:45:21] UI initialized
    [2010-10-07:13:45:21] Unpackaging to C:\Users\Username\AppData\Local\Temp\fla26AB.tmp
    [2010-10-07:13:45:42] unpackaging/validation is complete
    [2010-10-07:13:45:42] application is bound to this version of the runtime
    [2010-10-07:13:45:42] app id com.example.ourproduct
    [2010-10-07:13:45:42] pub id
    [2010-10-07:13:45:42] Application located at c:\program files (x86)
    [2010-10-07:13:45:42] creating native installer in: C:\Users\Username\AppData\Local\Temp\fla7883.tmp
    [2010-10-07:13:45:58] native installer creation complete
    [2010-10-07:13:45:58] Starting install
    [2010-10-07:13:45:58] using conversion output in C:\Users\Username\AppData\Local\Temp\fla7883.tmp
    [2010-10-07:13:45:58] Beginning install
    [2010-10-07:13:45:58] Installing C:\Users\Username\AppData\Local\Temp\fla7883.tmp\setup.msi
    [2010-10-07:13:46:18] Error occurred; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:46:18] Rolling back install of C:\Users\Username\AppData\Local\Temp\fla7883.tmp\setup.msi
    [2010-10-07:13:46:18] Rollback due to error complete
    [2010-10-07:13:46:18] stateInstalling: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:13:46:18] Failed during elevated install: error 0 1603
    [2010-10-07:13:46:22] application installer exiting
    [2010-10-07:13:48:09] Re-launching application from c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:13:48:09] starting cleanup of temporary files
    [2010-10-07:13:48:13] application installer exiting
    [2010-10-07:13:48:41] UI SWF load is complete
    [2010-10-07:13:48:43] UI initialized
    [2010-10-07:13:48:45] IO Error 2032 during pingback request
    [2010-10-07:13:48:45] begin quitting
    [2010-10-07:14:16:16] UI SWF load is complete
    [2010-10-07:14:16:17] UI initialized
    [2010-10-07:14:16:18] IO Error 2032 during pingback request
    [2010-10-07:14:16:18] begin quitting
    [2010-10-07:14:18:04] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:14:18:04] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:14:18:04] Updating to version 1.0.8.2
    [2010-10-07:14:18:04] UI SWF load is complete
    [2010-10-07:14:18:05] UI initialized
    [2010-10-07:14:18:05] beginning UI styling
    [2010-10-07:14:18:06] UI styling complete
    [2010-10-07:14:18:06] Unpackaging to C:\Users\Username\AppData\Local\Temp\fla5FBC.tmp
    [2010-10-07:14:18:35] unpackaging/validation is complete
    [2010-10-07:14:18:35] application is bound to this version of the runtime
    [2010-10-07:14:18:35] app id com.example.ourproduct
    [2010-10-07:14:18:35] pub id
    [2010-10-07:14:18:35] Application located at c:\program files (x86)
    [2010-10-07:14:18:35] Waiting for user confirmation
    [2010-10-07:14:18:35] User confirmed action: install
    [2010-10-07:14:18:35] creating native installer in: C:\Users\Username\AppData\Local\Temp\flaD2CA.tmp
    [2010-10-07:14:18:50] native installer creation complete
    [2010-10-07:14:18:50] Starting install
    [2010-10-07:14:18:50] using conversion output in C:\Users\Username\AppData\Local\Temp\flaD2CA.tmp
    [2010-10-07:14:18:50] Beginning install
    [2010-10-07:14:18:50] Installing C:\Users\Username\AppData\Local\Temp\flaD2CA.tmp\setup.msi
    [2010-10-07:14:19:26] Error occurred; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:14:19:26] Rolling back install of C:\Users\Username\AppData\Local\Temp\flaD2CA.tmp\setup.msi
    [2010-10-07:14:19:26] Rollback due to error complete
    [2010-10-07:14:19:26] stateInstalling: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1603" errorID=0]
    [2010-10-07:14:19:26] stateInstallingWithElevation: enter install
    [2010-10-07:14:19:26] stateInstallingWithElevation: c:\Program Files (x86)\Common Files\Adobe AIR\Versions\1.0\Adobe AIR Application Installer -runtime "c:\Program Files (x86)\Common Files" -update -silent -logToStdout "c:\program files (x86)\our wonderful product\our wonderful product.exe" file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air 1.0.8.2
    [2010-10-07:14:19:31] Starting update of c:\program files (x86)\our wonderful product\our wonderful product.exe
    [2010-10-07:14:19:31] Updating from file:///C:/Users/Username/AppData/Roaming/com.example.ourproduct/Local%20Store/%23Applica tionUpdater/update.air
    [2010-10-07:14:19:31] Updating to version 1.0.8.2
    [2010-10-07:14:19:31] UI SWF load is complete
    [2010-10-07:14:19:32] UI initialized
    [2010-10-07:14:19:32] subinstaller: Unpackaging to C:\Users\Username\AppData\Local\Temp\flaB0D7.tmp
    [2010-10-07:14:19:50] unpackaging/validation is complete
    [2010-10-07:14:19:50] application is bound to this version of the runtime
    [2010-10-07:14:19:50] app id com.example.ourproduct
    [2010-10-07:14:19:50] pub id
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