Installing software from a Domain Administrator account

I have a machine on a domain. I have logged into that machine using a Domain Admin account, and am trying to install some software. Theoretically, a Domain Admin should have full rights on that local machine, yes? However, when I try to do that install I
get an error message:
"The system administrator has set policies to prevent this installation."
Any ideas of why this is occurring? What settings might I need to adjust to give the domain admin installation access?

It works with a local admin account. Doesn't work with domain account. I installed my first domain server 2 days ago and have no idea what I'm doing, which may be contributing to the problem, but from everything I can tell it seems like the "Domain Admins"
group has full permissions on all computers in the domain. I'm very confused why this is happening when, as you said, the domain admin should become a local admin by default (and I never messed with any default settings).
If it works with a local account, but is denied with a domain account, then it is either permissions (unlikely based on what you've described), a domain policy setting denying installations to domain accounts, or possibly some other software/security blocking
the installation.
examine the eventlogs on the pc, for events relating to the attempted installation.
these articles may help you to check for settings that can cause this, you would then need to work out where those settings are coming from, so you can consider changing them.
http://social.technet.microsoft.com/Forums/windows/en-US/6c62e6cc-7893-421d-8b90-8e14eaa1eb48/the-system-administrator-has-set-policies-to-prevent-this-installation?forum=itprovistasecurity
http://www.itninja.com/question/the-system-administrator-has-set-policies-to-prevent-this-installation-1?from=appdeploy.com
Don
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Complete List of Technical Blogs: http://www.delawarecountycomputerconsulting.com/technicalblogs.php
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