You might see something like this in your MSI log.

DEBUG: Error 2769: Custom Action RemoveOldDriver.B391C18A_6953_11D4_82CB_00D0B72E1DB9 did not close 2 MSIHANDLEs.

Internal Error 2769. RemoveOldDriver.B391C18A_6953_11D4_82CB_00D0B72E1DB9, 2

Action ended 11:46:54: RemoveOldDriver.B391C18A_6953_11D4_82CB_00D0B72E1DB9. Return value 0.

Try installing Windows Installer 3.1.