Cause
This error may occur if there is a conflict between the version of the Windows Installer msi.dll file on the system and the one being installed by the installer. This error usually occurs if the version of msi.dll on your computer is 2.0.2600.2, and the version being installed by the installer is 2.0.2600.1 or earlier.

Solution

• You will need to unregister and register the Windows Installer Service.
• Delete the msi.dll file from your computer (Windows 95/98/ME)

More Info
Find more details about the error and solution from the following articles:

InstallShield Consumer Central: Q108476
Microsoft Support Article 329354