When trying to install new software I recieved the following error.

The Windows Installer Service could not be accessed. This can occur if you are running Windows in safe mode, or if the Windows Installer is not correctly installed.

I do not know how to fix this. Can someone please advise.

Hello JK0826,

Try following the steps below.
Go to start and hit run.
In the Open box type: "services.msc" (without quotation)
scroll down to "Windows Installer Service".
Double click it. Then tell me what you see in that window.

Regards,
Olrik

service name: MSIServer
Display name Windows installer
Description: Adds, modifies, and removes applications provided as a Windows Installer (*.msi) package. If this service is disabled, any services that explicitly depend on it will fail to start.
Path to executable: C:\Windows\system32\Msiexec.exe/V
Startup type: Manual
Service status: Stopped

Take a look at the following microsoft Article:
http://support.microsoft.com/kb/319624/en-us

Regards,
Olrik

Try to remove Windows Installer in Control Panel, Add/Remove Programs. Reboot the computer and let Windows Updates download and install the installer afresh.

I tried the article and it didnt work. I also tried removing from add remove programs and it wont even open. Im now getting an error that says "this application has failed to start because msi.dll Was not found."

What happened when you tried to uninstall Windows Installer 3.1 from Add/Remove programs. I am not sure I understood.

If not successful try the link in my signature to Windows Installer Cleanup utility. Read the article, download and run the program to remove Windows Installer 3.1. If successful, run windows updates to download and install a new copy of the removed installer.

Add/remove programs wont open. When I click on it nothing happens.

I tried your link..... I got a window that said
script: c:docum~1\jennif~1\LOCALS~1|Temp|IXP000.TMP\StartMsi.vbs
Line: 21
Char:1
Error: The system cannot find the file specified
code:80070002
Source: (null)

It looks as if the faulty installer is part of a broader problem. Do you have, or can you borrow, an XP installation CD which is of the same version installed on your computer? If yes, insert it into the drive and click Start > Run. at the text line type sfc /scannow (note the space in the command) and press Enter. Let the process run to the end at which the dialog box disappears.

These problems can be the result of malware infections. Could you run a full scan with your updated antivirus and a good antispyware program like Malwarebytes (you can download it in G2G malware forum. A link to the forum in the list of links below).