I had a similar problem installing .NET framework 3.5 SP1 over a system having 2.0 SP1 running WEPOS SP3, with WIC giving the following error(I suppose it is running in 'quiet' mode, so details were suppressed):
[11/28/08,02:36:31] WIC Installer: [2] Setup Failed on component WIC Installer
[11/28/08,02:36:55] WapUI: [2] DepCheck indicates WIC Installer is not installed.
[11/28/08,03:36:16] WIC Installer: [2] Error code 1603 for this component means "Fatal error during installation.
After searching the net many days for a suitable fix to no avail, I inspected the "dd_WIC.txt" file created by .NET framework 3.5 SP1 installer, to find the following lines:
0.094: C:\Windows\system32\WMPhoto.dll is Present
0.109: FileVersion of C:\Windows\system32\WMPhoto.dll is Greater Than 6.0.5840.16388
0.109: Condition Check for Line 3 of PreRequisite returned FALSE
0.156: WIC Setup encountered an error: Newer version of update is already on the system.
So there you have it, WIC installer seemed to have failed since a newer version of WMPhoto.dll existed on my machine. I renamed the WMPhoto.dll and then tried running WIC installer and it completed succesfully. .NET framework 3.5 SP1 also installed successfully thereafter. I thereafter restored the original WMPhoto.dll(newer version.)
Another blog gives a better procedure to remove WMPhoto.dll:
cd c:\WINDOWS\system32
regsvr32 /u WMPhoto.dll
del WMPhoto.dll
http://forums.microsoft.com/MSR/Show...9908&SiteID=37
The question arises how the newer version of WMPhoto.dll has been installed in the machine. After comparing the original WEPOS with WEPOS after SP3 was installed, I found out that WMPhoto.dll has been installed by SP3, and is not included in the original WEPOS. Other users have also reported that they have been using XP SP3 and have experienced the error:
"I also have windows XP servicepack 3 and same problems as the most of you, guys."
http://forums.bigfishgames.com/posts/list/80/9939.page
Alternatively, you can try installing WEPOS or XP(as the case maybe), installing fx3.5 and then installing SP3. This approach doesnt require any files to be deleted. I am not sure that by deleting any files, whether any agreements would be violated.