Thank you so much for the respond. Very appreciated.
1. Installation package is fine. I already installed it and worked with it on several other systems. It is downloaded from VMWare site. I am installing Workstation 9, and I also tried with 8 and 7 on this system to see what will happen, but same error.
2. System I am running is Win 7 Ultimate Edition (with SP1), built and installed a month ago. Running smooth...
3. I am installing with Admin privileges. I tried in CMD, same thing...
4. UCA is turned off
5.About the services, my bad, I was stupid on that one.
Please find attached the error I am getting. It started with MSI error and expanded to service. Error appears at the the finalizing stage of installation.
I tried one of offered solutions, to change Temp folder location under Environment Variables under Advance System Settings (My Computer), it didn't help.