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Class not registered when trying to install apps or even InstallShield update from installshield app ikernel.exe

We have an XP Home laptop that is having a problem with the error message 'class not registered' for several pieces of hardware that want to install their software - Iomega externa USB CD drive and Canon printer, and likely others that slip my mind right now.

When trying to install the Iomega apps, I get an error with ikernel.exe 'class not registered'.  Googling that, it's an InstallShield app.  Their website has suggestions of clean the temp folders, reboot, tweak DCOM settings, etc.  all were empty, configured correctly already, but the problem persists.  I found an INstallsheidl page saying to delete the engine folder and reinstall installsheild... even that gets the 'class not registered' message!

The machine runs OK other than when trying to install apps.  We are logged on as an administrator, there are no other users logged in or even that exist...

Other than a reinstall, any recommendations!?
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I re-extracted that file from the i386 folder on the CD and compared them (with the one already installled) and they were the same, bit for bit.