Cannot install anything MSI related

Hi ,

Having problem running an installation that is based on MSI. Cannot run many
Windows Update Installers or update Norton's LiveUpdate. I've reinstalled
the latest Windows Installer package and followed steps listed in several
Microsoft support articles.

Trying to install LiveUpdate this is the message
"Error 1719. The Windows Installer Service could not be accessed. This can
occur if you are running Windows in safe mode or if the Windows Installer is
not correctly installed."

The installer service is running. I have a hunch it has something to do with
the log files based on errors from other installations.

Thanks very much in advance.

btw, running on a admin account. I also tried creating a new one and trying
an install from there. no luck.
Hive permissions are set as the help articles state.