Error 1603 while trying to install Workstation components for SQL 2005

did you already see this support notice:
http://support.microsoft.com/kb/916760

uups, I see you have the 2 folders ... overlooked that...
still, that error is too close to the support note, and I found nothing else than that...

Yes I did.  And as you can see from my question above,  I have the install files directly under the root drive C in SQLServer2205 with all the files in the Servers and Tools folders exactly as the artical suggested.

did you eventually already apply a SP to the sql server installation, before trying now to install the client tools?

can you check the contents of the setup log files:
%Program Files%\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files

if you find some more information there?

I have ran an update on the Windows Installer for SQL 2005.  I am not sure how to even go about finding a SP for the sql server installation.  As you mentioned earlier, the error is very close to the support note, but it is not the same.  

The last part of the summary.txt is
--------------------------------------------------------------------------------
Machine         : YOUR-0A1DF217F8
Product         : Workstation Components, Books Online and Development Tools
Error           : There is a problem with this Windows Installer package. A program run as part of the setup did not finish as expected. Contact your support personnel or package vendor.  
--------------------------------------------------------------------------------
Machine         : YOUR-0A1DF217F8
Product         : Microsoft SQL Server 2005 Tools
Product Version : 9.00.1399.06
Install         : Failed
Log File        : C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files\SQLSetup0005_YOUR-0A1DF217F8_Tools.log
Error Number    : 1603
--------------------------------------------------------------------------------

 SQL Server Setup failed. For more information, review the Setup log file in %ProgramFiles%\Microsoft SQL Server\90\Setup Bootstrap\LOG\Summary.txt.


Time            : Sat Sep 29 14:15:47 2007

The relavent protion of the SetupLog is
Complete: InstallToolsAction.10 at: 2007/8/29 14:8:6, returned true
Skipped: RepairForBackwardsCompatRedistAction
Skipped: Action "RepairForBackwardsCompatRedistAction" was not run.  Information reported during analysis:
Action: "RepairForBackwardsCompatRedistAction" will be skipped due to the following condition:
Condition "sql was successfully upgraded." returned false.
Skipped: UninstallForMSDE2000Action
Skipped: Action "UninstallForMSDE2000Action" was not run.  Information reported during analysis:
Action: "UninstallForMSDE2000Action" will be skipped due to the following condition:
Condition "Action: InstallSqlAction was skipped." returned true.
Skipped: UninstallForSQLAction
Skipped: Action "UninstallForSQLAction" was not run.  Information reported during analysis:
Action: "UninstallForSQLAction" will be skipped due to the following condition:
Condition "Action: InstallSqlAction was skipped." returned true.
Running: InstallToolsAction at: 2007/8/29 14:8:6
Installing: tools on target: YOUR-0A1DF217F8
******* Got commit request from MSI *******
Failed to install package
Fatal error during installation.
Setting package return code to: 1603
Complete: InstallToolsAction at: 2007/8/29 14:14:32, returned false
Error: Action "InstallToolsAction" failed during execution.  Error information reported during run:
Target collection includes the local machine.
Invoking installPackage() on local machine.
Skipped: UninstallForRS2000Action
Skipped: Action "UninstallForRS2000Action" was not run.  Information reported during analysis:
Action: "UninstallForRS2000Action" will be skipped due to the following condition:
Condition "Action: InstallRSAction was skipped." returned true.
Running: ReportChainingResults at: 2007/8/29 14:14:32
Error: Action "ReportChainingResults" threw an exception during execution.
One or more packages failed to install. Refer to logs for error details. : 1603
        Error Code: 0x80070643 (1603)
Windows Error Text: Fatal error during installation.

  Source File Name: sqlchaining\sqlchainingactions.cpp
Compiler Timestamp: Thu Sep  1 22:23:05 2005
     Function Name: sqls::ReportChainingResults::perform
Source Line Number: 3097

Error: Failed to add file :"C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files\SQLSetup0005_YOUR-0A1DF217F8_.NET Framework 2.0.log" to cab file : "C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\SqlSetup0005.cab" Error Code : 2
Error: Failed to add file :"C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files\SQLSetup0005_YOUR-0A1DF217F8_.NET Framework 2.0 LangPack.log" to cab file : "C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\SqlSetup0005.cab" Error Code : 2
Error: Failed to add file :"C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files\SQLSetup0005_YOUR-0A1DF217F8_.NET Framework Windows Installer.log" to cab file : "C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\SqlSetup0005.cab" Error Code : 2
Error: Failed to add file :"C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files\SQLSetup0005_YOUR-0A1DF217F8_.NET Framework Windows Installer LangPack.log" to cab file : "C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\SqlSetup0005.cab" Error Code : 2
Running: UploadDrWatsonLogAction at: 2007/8/29 14:16:15
Message pump returning: 1603

Hopefully someone will recognize what is going on here.