SCCM Client is failing to install

I have a number of machines that the client will just not install on  or has had the 2007 SP1 client on but will not reinstall with the R2.

When I have looked through the server log ccm.log this seems to indicate that the files download fine to the machine.

However looking through the ccmsetup.log it seems to fail for the following reason

<![LOG[Installation failed with error code 1635]LOG]!><time="16:23:45.106+000" date="03-09-2011" component="ccmsetup" context="" type="3" thread="4864" file="msiutil.cpp:889">

I have attached part of the client.msi.log which I hope will give more clues as to why the install failed I just do not know how to resolve the issue.

=== Verbose logging started: 09/03/2011  16:23:43  Build type: SHIP UNICODE 3.01.4001.5512  Calling process: C:\WINDOWS\system32\ccmsetup\ccmsetup.exe ===
MSI (c) (28:80) [16:23:43:669]: Resetting cached policy values
MSI (c) (28:80) [16:23:43:669]: Machine policy value 'Debug' is 0
MSI (c) (28:80) [16:23:43:669]: ******* RunEngine:
           ******* Product: C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi
           ******* Action:
           ******* CommandLine: **********
MSI (c) (28:80) [16:23:43:669]: Client-side and UI is none or basic: Running entire install on the server.
MSI (c) (28:80) [16:23:43:669]: Grabbed execution mutex.
MSI (c) (28:80) [16:23:43:747]: Cloaking enabled.
MSI (c) (28:80) [16:23:43:747]: Attempting to enable all disabled priveleges before calling Install on Server
MSI (c) (28:80) [16:23:43:762]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (DC:94) [16:23:43:778]: Grabbed execution mutex.
MSI (s) (DC:08) [16:23:43:778]: Resetting cached policy values
MSI (s) (DC:08) [16:23:43:778]: Machine policy value 'Debug' is 0
MSI (s) (DC:08) [16:23:43:778]: ******* RunEngine:
           ******* Product: C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi
           ******* Action:
           ******* CommandLine: **********
MSI (s) (DC:08) [16:23:43:778]: Machine policy value 'DisableUserInstalls' is 0
MSI (s) (DC:08) [16:23:43:809]: File will have security applied from OpCode.
MSI (s) (DC:08) [16:23:44:637]: SOFTWARE RESTRICTION POLICY: Verifying package --> 'C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi' against software restriction policy
MSI (s) (DC:08) [16:23:44:637]: SOFTWARE RESTRICTION POLICY: C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi has a digital signature
MSI (s) (DC:08) [16:23:44:965]: SOFTWARE RESTRICTION POLICY: C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi is permitted to run at the 'unrestricted' authorization level.
MSI (s) (DC:08) [16:23:44:965]: End dialog not enabled
MSI (s) (DC:08) [16:23:44:965]: Original package ==> C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi
MSI (s) (DC:08) [16:23:44:965]: Package we're running from ==> C:\WINDOWS\Installer\11a3750.msi
MSI (s) (DC:08) [16:23:44:981]: APPCOMPAT: looking for appcompat database entry with ProductCode '{2609EDF1-34C4-4B03-B634-55F3B3BC4931}'.
MSI (s) (DC:08) [16:23:44:981]: APPCOMPAT: no matching ProductCode found in database.
MSI (s) (DC:08) [16:23:44:981]: MSCOREE not loaded loading copy from system32
MSI (s) (DC:08) [16:23:44:981]: Machine policy value 'TransformsSecure' is 0
MSI (s) (DC:08) [16:23:44:981]: User policy value 'TransformsAtSource' is 0
MSI (s) (DC:08) [16:23:44:981]: Note: 1: 2262 2: MsiFileHash 3: -2147287038
MSI (s) (DC:08) [16:23:44:997]: Note: 1: 1314 2: ”\\{Server Name}\SMSPKGE$\DR400004\i386\hotfix\KB977384
MSI (s) (DC:08) [16:23:44:997]: Unable to create a temp copy of patch '”\\{Server Name}\SMSPKGE$\DR400004\i386\hotfix\KB977384\sccm2007ac-sp2-kb977384-x86-enu.msp'.
MSI (s) (DC:08) [16:23:44:997]: Note: 1: 1708
MSI (s) (DC:08) [16:23:44:997]: Note: 1: 2729
MSI (s) (DC:08) [16:23:44:997]: Note: 1: 2729
MSI (s) (DC:08) [16:23:44:997]: Product: Configuration Manager Client -- Installation failed.

MSI (s) (DC:08) [16:23:44:997]: MainEngineThread is returning 1635
This patch package could not be opened.  Verify that the patch package exists and that you can access it, or contact the application vendor to verify that this is a valid Windows Installer patch package.
C:\WINDOWS\system32\ccmsetup\{4CD82FBB-0AFC-4864-A089-15364DF5F14B}\client.msi
MSI (c) (28:80) [16:23:45:106]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (28:80) [16:23:45:106]: MainEngineThread is returning 1635
=== Verbose logging stopped: 09/03/2011  16:23:45 ===