MSI installers failing

When I try and install Adobe reader on my Windows 2012 R2 server it comes up with the following error

2015-09-14 13:12:08] SetupInstaller...
[2015-09-14 13:12:08] Extracting: C:\Users\***\AppData\Local\Temp\3\15150\installer.bin
[2015-09-14 13:12:08] Installer folder: C:\ProgramData\Adobe\Setup\{AC76BA86-7AD7-FFFF-7B44-AC0F074E4100}
[2015-09-14 13:12:08] Extracting files from Archive: C:\Users\***\AppData\Local\Temp\3\15150\installer.bin
[2015-09-14 13:12:25] StartInstaller...
[2015-09-14 13:12:25] CreateProcess cmdLine: "C:\ProgramData\Adobe\Setup\{AC76BA86-7AD7-FFFF-7B44-AC0F074E4100}\setup.exe" /msi DISABLE_CACHE=1
[2015-09-14 13:12:26] Installer finished with exit code: -1073740791
[2015-09-14 13:12:26] Cleanup...
[2015-09-14 13:12:26] Program finished with exit code: -1073740791

Has anyone come across this?

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Vadim RappCommented:
I would check if "C:\ProgramData\Adobe\Setup\{AC76BA86-7AD7-FFFF-7B44-AC0F074E4100}\setup.exe" exists - while installation message is still on the screen; if it does, try to launch it manually from command line.
stdcitunitAuthor Commented:
I have checked in the folder and the setup file is there, there is also a AcroRead.msi.
I ran the msi and I get the following message

Error 1719.Windows Installer service could not be accessed. Contact your support personnel to verify that it is properly registered and enabled.
Error 1719.Windows Installer service could not be accessed. Contact your support personnel to verify that it is properly registered and enabled.
=== Logging stopped: 15/09/2015  9:50:58 ===

I have tried to reregistering MSIEXEC/UNREGISTER & MSIEXEC/REGSERVER but it still does not allow me to install.

This is also happening with other applications

It seems like the windows installer is corrupt
Vadim RappCommented:
> I ran the msi

Please run it like this:

msiexec.exe  /l*v c:\install.log /i "<path to msi file>"

then post c:\install.log here.

People usually do what you did when they see this error "Windows Installer service could not be accessed", but Installer is never corrupt, and registering it has never helped anybody (from what we saw). The problem is usually in some setting on  machine, such as group policy setting. The log will tell.
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stdcitunitAuthor Commented:
Log file attached
Vadim RappCommented:
according to the log, the root of the problem is in these lines:

MSI (c) (78:38) [10:04:37:054]: Connected to service for CA interface.
CustomAction ISSetupFilesExtract returned actual error code 1601 (note this may not be 100% accurate if translation happened inside sandbox)
MSI (c) (78:40) [10:04:37:054]: Note: 1: 1719

Looking up ISSetupFiles on the web, we find this:
This custom action extracts any files that you have added in the Support Files view. For more information, see Using Support Files.

Support files are files that are available on the target system only during your application’s installation process. Support files are copied to a temporary directory on the target system when installation begins. The support files are deleted when the installation is complete. The support directory is a dynamic file location and might be different on every target system and even on the same system for different installation instances.

Error 1601 means "out of disk space". I would run Process Monitor and tried to find out where it's trying to extract files, maybe some non-existing drive letter or something like that. Check if there's anything unusual in this system in the area of storage configuration, drive letters, user directories, and such. Especially check what is %temp% for the user and for the machine, and if these directories exist and have right permissions.
stdcitunitAuthor Commented:
I have run the procmon and I am not seeing any issue with disk space, because the drive it is trying to write to have enough space and permissions
Vadim RappCommented:
There must have been some problem - we know that it failed when extracting files, and we know that it said "no space". "No space" is actually never that, it's some problem with file system, most often looking for (usually hardcoded) drive or directory that does not exist.

The only other way to help it is to open MSI in ORCA (or any other MSI editor) and remove this custom action ISSetupFilesExtract at all (save the backup of course; or even better, save the changed file as transform and install with that transform). I actually tried just that, and there was no problem to install. Of course you'll have to test installed product thoroughly.

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Vadim RappCommented:
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