Nevermind - I fixed my own issue. It was with DCOM and IUSER_Server did not have Local Activation priviledges on the Server Locater Point DCOM service.
I'm having the same problem with using capinst.
here is my capinst.log
*** Starting Installation *** - Thu May 04 12:08:09 2006
Unable to open the client version registry key (0).
2 Command line argument(s):
capinst
/AdvCli
Checking OS Version:
Windows 2000 or greater detected.
Building...
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