Thanks Bads and Will.
Disabling the Windows Installer in Safe Mode and restarting the service in Normal Mode does fix the problem.
I managed to install ACDSee 6 like that.
But when I tried to install another application, the same problem reappeared i.e. Installer not responded. Had to end task the msexec.exe finally. I am afraid I have to do the above process (i.e. disabling Windows Installer in Safe Mode etc.) for every application I wish to install.
I think my Windows Installation is screwed for some reason.
When I tried moving folder to another (network) folder, I get an error saying: The feature you are trying is not currently available. Please insert Roxio Easy Media Creator 7 CD and Press OK. lol.
Also, I cannot right click and go to Properties in any folder. Alt + Enter does not work too.
Guess I have to reformat.
This is the first time something like this happened to me. I guess that is because I didn't properly format the HDD and install Windows. I renamed the old Windows folder, Documents and Settings folder and Program Files folder.
TTFN,
McoreD.