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Thanks Bob for this one:

"Upon installing SP3 for Win2k, some have reported errors using the Windows Installer service. I have encountered this issue when trying to install vdmsound. Here is one possible fix to use with caution:

1. Run msiexec.exe from the command prompt to verify the version, if there is no dialog box but instead an error in the NTVDM, then continue with these instructions.
2. Download InstMsiW.exe from this web site:
http://www.microsoft.com/downloads/release.asp?ReleaseID=32832
3. Extract InstMsiW.exe using WinZip or a similar tool.
4. Check and write down the versions (via the properties of file) of the following files in the ?WINNTSYSTEM32 directory:
msi.dll
msiexec.exe
msihnd.dll
5. For step 4, msiexec.exe should not have reported a version but instead appeared as a 16-bit program (dos).
6. From the extracted contents of InstMsiW.exe copy msiexec.exe over the old copy (backup the original msiexec.exe first).
7. Run the following command:
msiexec /unregister
8. Run the following command:
msiexec /regserver

Hopefully this helps, Bob"