I have. Spent lot's of time to try to resolve it, which did actually happen. What i tried:
1. Removed ALL external devices attached to my notebook.
2. Uninstalled McAfee and Webroot Spysweeper.
3. Went to msconfig and disabled every non-microsoft service at startup.
Install then did proceed to completion.
Not sure which of the above helped. Not an expert, but appears that there was an incompatible device driver, or an incompatible service running.
Not sure, but in recent weeks (under xp) i had been receiving a svchost.exe, for which i attempted to apply a patch.
Also, and it may be a co-incidence, if you google the error, in every case that i saw there was an windows/xpsp2 installation upgrading to Vista Ultimate.
HTH, norm