The system administrator has set policies to prevent this installation

We have a server running with Windows Server 2003 SP1 (Domain Controller) and I am the Administrator of the same. The problem is whenever am trying to install any software with .exe or .msi extension I get the following error message:

"The system administrator has set policies to prevent this installation"

I tried updating Windows Installer to version 3.1 v2 as well as DisableMSI reg key and set the value to 0 but still getting the same problem.

Somebody please help me. Thank you.

I guess you might have made software restriction execution that is blocking the installation. You should once again verify the Software Restriction Policies for your user account. To see if this is correct, run the Group Policy Result wizard in GPMC. Let me know the results.

Thanks a lot for the reply and suggestions, buddy, but I have already checked my GOP and local policy settings, there are nothing such Software Restriction Policies for my user account.

Any other solution please?

You mentioned you had set the DisableMSI registry setting to 0. That is correct. However, make sure your GPO setting matches this registry value or else the GPO will override it the next time the machine reboots.

Under Computer Configuration, Administrative Templates, Windows Components, Windows Installer, Disable Windows Installer:

Set it to "Enabled" and then choose "Never".

This will match the DisableMSI registry setting of 0, which is to always allow installation of msi packages.

The fact that all your domain machines cannot install msi packages indicates that the GPO setting is in your default domain policy.