“The Windows Installer Service could not be accessed. This can occur if you are running Windows in a safe mode, or if the Windows Installer is not correctly installed. Contact your support personnel for assistance.”
I read and tried lots of solutions around the web, but most of them didn’t work. This solved it for me:
Ensure the Windows Installer service is not disabled by typing “NET STOP MSISERVER” and “NET START MSISERVER” at the command line.
To reach the command line in Windows XP, go to Start -> Run -> “cmd”
For future reference, some instances of msi.dll are located in:
C:\Windows\system32
C:\Windows\ServicePackFiles\i386 (probably can leave this one)
E:\I386 (this too)
E:\Windows\System32 (only if I have trouble with the Windows on drive E, which should be F…)

this didn’t work for me
after that you have to start the windows installer service as shown before and it will start without problem.
This is the solution that worked for me, i accpet paypal donation if i save your day and avoid you a windows reinstallation
any amount will be welcome.
1. Click Start, click Run, then type Regedt32.
2. For each of the registry hives, follow these steps:
a. Select the hive.
b. For Windows XP, on the Edit menu, click Permissions.
For Windows 2000 and Windows NT 4, on the Security menu, click Permissions.
3. Verify that the SYSTEM account has been added and that it has Full control. If it does not, add the SYSTEM account with Full control.