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Microsoft Office Install stopping on MSPTLS.DLL

I have a installation of Microsoft Office 2007 Small Business that went bad. It kept prompting to install everytime I tried to open any of the Office applications. So I uninstalled the entire thing and figured I would just reinstall it. Well now I can't get it to reinstall successfully.

About 3/4 of the way through the install it stops on this file. MSPTSL.DLL
It gives me this message.
failed to install ..
Error 1304. Error writing to file: C:\Program Files\Common Files\Microsoft Shared\OFFICE12\MSPTLS.DLL. Verify that you have access to that directory.

I thought maybe there was a registry entry that was locking the file so that I couldn't write to it so I searched for it in the registry. I found the entry and deleted it, but still get this error on install.

I can't do anything to the file itself without getting error.

Does anyone have any ideas or have you seen this before ?
Please help. I need to get 2007 Office back on this computer quickly.
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tdukie13
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