I am running XP.
Here is the log,.
[06/29/06,20:41:47] Starting Install.exe
[06/29/06,20:41:47] Parsing switches from commandline: C:\DOCUME~1\user1\LOCALS~1\Temp\IXP000.TMP\Install.exe
[06/29/06,20:41:47] SourceDir: C:\DOCUME~1\user1\LOCALS~1\Temp\IXP000.TMP\
[06/29/06,20:41:47] Install started
[06/29/06,20:41:47] Checking system requirements
[06/29/06,20:41:47] OS: Win 98
[06/29/06,20:41:47] Ver: Gold
[06/29/06,20:41:47] SP:
[06/29/06,20:41:47] Checking Internet Explorer Version
[06/29/06,20:41:47] Looking for 5.0.2919.6307
[06/29/06,20:41:47] Found Internet Explorer Version: 6.0.2600.0000
[06/29/06,20:41:47] Internet Explorer Version is OK...
[06/29/06,20:41:47] System meets minimum requirements
[06/29/06,20:41:47] Checking Windows Installer version...
[06/29/06,20:41:47] Trying to load msi.dll
[06/29/06,20:41:47] Loading: C:\WINDOWS\System32\msi.dll
[06/29/06,20:41:47] msi.dll loaded ok
[06/29/06,20:41:47] Looking for: 2.0.2600
[06/29/06,20:41:47] Found: 2.0.2600
[06/29/06,20:41:47] Windows Installer version ok
[06/29/06,20:41:47] Finished Checking Windows Installer version.
[06/29/06,20:41:47] Trying to load msi.dll
[06/29/06,20:41:47] Loading: C:\WINDOWS\System32\msi.dll
[06/29/06,20:41:47] Looking for mscoree.dll from PDC
[06/29/06,20:41:47] mscoree.dll from PDC is not installed local
[06/29/06,20:41:47] Looking for mscoree.dll from Beta
[06/29/06,20:41:47] mscoree.dll is not installed local
[06/29/06,20:41:47] Trying to load msi.dll
[06/29/06,20:41:47] Loading: C:\WINDOWS\System32\msi.dll
[06/29/06,20:41:47] Installing: C:\DOCUME~1\user1\LOCALS~1\Temp\IXP000.TMP\netfx.msi
[06/29/06,20:41:47] StopDarwinService() - Note: Win9x/Win31 machine, not necessary to stop the darwin service. Continuing with setup...
[06/29/06,20:41:47] Trying to load msi.dll
[06/29/06,20:41:47] Loading: C:\WINDOWS\System32\msi.dll
[06/29/06,20:41:47] Full UI
[06/29/06,20:41:47] Calling MsiInstallProduct() with commandline: REBOOT=ReallySuppress
[06/29/06,20:41:48] MsiInstallProduct() returned 1601
[06/29/06,20:41:48]
[MsiInstallProduct]
ReturnCode=1601
[06/29/06,20:41:48] Preparing Dialog
[06/29/06,20:41:48] Message: Microsoft .NET Framework Setup failed. If this problem continues, contact Product Support Services.
[06/29/06,20:41:49] Install.exe returning 1601
[06/29/06,20:41:49]
[Install.exe]
ReturnCode=1601