How do I get VS 2008 to install on my machine?

Please help!  I've spent countless hours trying to install Visual 2008 on my Win XP SP3 machine.  I've searched high & low through posts of others with similar problems and nothing seems to work.  Here are the details:

I recently reformatted my hd & reinstalled XP OS with sp3 and IIS5.1.   I dowloaded the VS 05 iso from Microsoft and mounted it on a virtual drive.  Tried to install.  It failed when it reached the install of asp.net 3.5.

I then tried installing .net 3.5 separately and tried VS install again...  this time VS setup failed at the first step ("failed to install Microsoft Document Explorer 2008").

Since then, I've tried every possible combination of tricks.  Turned off antivirus, clean temp folder, etc.

Not sure how to interpret the log file results (attached).  It looks to me as though part of the problem is that setup can't launch the files needed from the way these files are organized on the mounted drive, so I copied all files from the mounted drive to a regular directory on my c:drive.  I then unmounted the virtual drive and uninstalled the driver, then rebooted to make sure there was no reference to virtual drive and ran setup again.  The log file still makes reference to the virtual drive, but with respect to the Document Explorer failure message, it also makes reference to the new location where I copied the setup files (see attached log file).  Setup now still fails at the first step.  

Here are the few few lines of the log file that reference the "z" drive, which is no longer mounted:

[09/07/08,12:33:07] Microsoft .NET Framework 3.5: [2] CreateProcess Failed with error code 193
[09/07/08,12:33:07] Microsoft .NET Framework 3.5: [2] z:\setup\..\wcu\dotnetframework\dotnetfx35setup.exe could not be launched successfully.
[09/07/08,12:33:08] VS70pgui: [2] DepCheck indicates Microsoft .NET Framework 3.5 is not installed.

Further down in the log file, there is reference to the location where setup file ARE currently located:

[09/07/08,13:45:37] Microsoft Document Explorer 2008: [2] c:\downloads\vs2008\setup\setup\..\wcu\dexplore\dexplore.exe could not be unpackaged because it is not a cabinet.

Also Note: I had also installed SQL server 2005 and excluding sqlexpress during vs08 setup.  When that didn't work, I uninstalled sql server 05 and tried installing vs08 with default settings that include sqlexpress.  That did nothing, so I reinstalled sql05.  So currently, I have IIS5, asp.net 3.5 sp1 and Sql Server 05 on my WinXP sp3 machine.  Log file and snapshot of failure message attached.

Might anyone be able to help me with this nightmare?
vs08Fail.gif
vs08Log.txt