>CRM for Outlook would to install SQL Server Compact 4.0 SP1 again It *sounds* like it's trying to self-heal.
Check the event log for MSIInstaller events with the ID 1001. That will point you to the relevant product (GUID), feature (name) and component (GUID) in the MSI which WI is trying to heal. My bet is that it's either trying to write to a protected file or registry value or, more likely, to the profile of the installing user.
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