Undefined error updating Adobe AIR on Windows Server 2008

Question

I am trying to upgrade from Adobe AIR version 2.7.1.1961 to version version 3.1.0.4880.
The operating system is Windows Server 2008 Standard  - SP1
I am logged on as the administrator and shortly in the upgrade process, I receive a Window stating:
Sorry an error has occurred
An error occured while install Adobe AIR. Installation may not be allow by your administrator.
Please contact your administrator
Following is the install log:
[2012-02-15:15:56:56] Runtime Installer begin with version 3.1.0.4880 on Windows Server 2008 x86
[2012-02-15:15:56:56] Commandline is:
[2012-02-15:15:56:56] Installed runtime (2.7.1.19610) located at c:\Program Files (x86)\Common Files\Adobe AIR
[2012-02-15:16:02:46] Relaunching with elevation
[2012-02-15:16:02:46] Launching subprocess with commandline c:\users\admini~1\appdata\local\temp\1\air704f.tmp\adobe air installer.exe -ei
[2012-02-15:16:02:46] Runtime Installer begin with version 3.1.0.4880 on Windows Server 2008 x86
[2012-02-15:16:02:46] Commandline is: -stdio \\.\pipe\AIR_15060_0 -ei
[2012-02-15:16:02:46] Installed runtime (2.7.1.19610) located at c:\Program Files (x86)\Common Files\Adobe AIR
[2012-02-15:16:02:46] Starting silent runtime update. Updating runtime from version 2.7.1.19610 to version 3.1.0.4880
[2012-02-15:16:02:46] Installing msi at c:\users\admini~1\appdata\local\temp\1\air704f.tmp\setup.msi with guid {FE23D063-934D-4829-A0D8-00634CE79B4A}
[2012-02-15:16:02:46] Error occurred during msi install operation; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-15:16:02:46] Rolling back install of c:\users\admini~1\appdata\local\temp\1\air704f.tmp\setup.msi
[2012-02-15:16:02:46] Rollback complete
[2012-02-15:16:02:46] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-15:16:02:46] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-15:16:02:46] Runtime Installer end with exit code 7
[2012-02-15:16:04:17] Runtime Installer end with exit code 7
Other notes that might be of use is that I have tried to uninstall Adobe AIR with a similar error message.
I am hoping someone can provide some insight on how to resolve this situation.

Answer 1

Thanks for the links above.
I downloaded and run the Microsoft Install and Uninstall Fix It. Thinking there could be issues with the current version of AIR, I ran the utility and chose to uninstall the current version of AIR; and was successful.
I followed up by restarting the computer and then go to the Adobe AIR download page. When I try to install the new version, it get basically the same error message.  The log file from the install is below.
[2012-02-16:18:07:14] Runtime Installer begin with version 3.1.0.4880 on Windows Server 2008 x86
[2012-02-16:18:07:14] Commandline is:
[2012-02-16:18:07:14] No installed runtime detected
[2012-02-16:18:07:19] Relaunching with elevation
[2012-02-16:18:07:19] Launching subprocess with commandline c:\users\princi~1\appdata\local\temp\air11d3.tmp\adobe air installer.exe -ei
[2012-02-16:18:07:19] Runtime Installer begin with version 3.1.0.4880 on Windows Server 2008 x86
[2012-02-16:18:07:19] Commandline is: -stdio \\.\pipe\AIR_2648_0 -ei
[2012-02-16:18:07:19] No installed runtime detected
[2012-02-16:18:07:19] Starting silent runtime install. Installing runtime version 3.1.0.4880
[2012-02-16:18:07:19] Installing msi at c:\users\princi~1\appdata\local\temp\air11d3.tmp\setup.msi with guid {FE23D063-934D-4829-A0D8-00634CE79B4A}
[2012-02-16:18:07:19] Error occurred during msi install operation; beginning rollback: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-16:18:07:19] Rolling back install of c:\users\princi~1\appdata\local\temp\air11d3.tmp\setup.msi
[2012-02-16:18:07:19] Rollback complete
[2012-02-16:18:07:19] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-16:18:07:19] Runtime Installer end with exit code 7
[2012-02-16:18:07:19] Exiting due to error: [ErrorEvent type="error" bubbles=false cancelable=false eventPhase=2 text="1601" errorID=0]
[2012-02-16:18:07:22] Runtime Installer end with exit code 7
Finally, when I try to run the fixit tool again, it is of no practical use as there is no program to repair.
Again,  I am hoping someone can provide some insight on how to resolve the current situation