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Dynamics SL 7.0 FP1 Error 1720 during install on Windows 7 Pro 32bit

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We are getting the following error messages on a Windows 7 32bit while trying to install Dynamics SL 7.0 FP1.

Error 1720: There is a problem with this Windows Installer package.  A script required for this install to complete could not be run.  Contact your support personnel or package vendor.

When we click OK we get the following error:

Error -1603 Fatal error during installation.

Consult Windows Installer Help (Msi.chm) or MSDN for more information. 

In the title bar is says: Feature transfer error

If I move these errors off to the side the Setup wizard is still open, progress bar at 100% and the current task says: Removing backup files.

Install works perfect on old Windows XP computers (yes I know they need to go away) and on Windows 7 64 bit computers.  Only this Windows 7 32bit computer is giving me a hard time.

I'd really appreciate any suggestions as I'm at a loss on this one.

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