"Failure to Properly Initialize" msg when trying to install Software

Dimension 8400 with all XP Pro patches installed. New computer started setup last part of July.

Initially No Problem on installing software.

Then I tried and was not able to do so.

Contacted Dell Tech Support. Answer was no help ("Computer uses new technology that is not compatible with software"). Contacted Software suppliers.

One thought the problem was in Install Shield, so I downloaded and installed latest version. No help.

Best Buy Geeks said might be spyware - ran lavasoft and spybot - no change.

Failure to initialize happens on downloaded software as well as software being installed from CD/DVDs.

The error msg box is titled "setup.exe - Application Error"

The msg is: "The Application failed to initialize properly ()xc0000005), Click on OK to terminate the Application."

Situation is I now have a new computer that I cannot load new software into.

Have considered doing system restore, but if I do not know what the problem is it might pop up again and the time would be wasted.

Please give me advice. Has anyone else had this problem.