Reset the permissions on the Registry and file by using the Subinacl.exe. To do this go to the command prompt and type the following. Make sure you press Enter after each command.
Code:
cd /d “%ProgramFiles%\Windows Resource Kits\Tools”
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=administrators=f /grant=system=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=administrators=f /grant=system=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=administrators=f /grant=system=f
subinacl /subdirectories %SystemDrive% /grant=administrators=f /grant=system=f
subinacl /subdirectories %windir%\*.* /grant=administrators=f /grant=system=f
secedit /configure /cfg %windir%\repair\secsetup.inf /db secsetup.sdb /verbose
Make sure you have the administrative privileges before you run all of the above commands. Now, try to install Windows XP SP3, it should work as normal.
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