CR2008 SP1 merge module install error: clientdoc.dll failed to register

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Have a client who is trying to install the Crystal 20o8 sp1 runtime merge modules and is receiving the following error:

Product: Crystal 2008 sp1 -- Error 1904.Module C:\Program Files\Business Objects\BusinessObjects Enterprise 12.0\win32_x86\clientdoc.dll failed to register. HRESULT -2147319780. Contact your support personnel.

They have Crystal Version 8.0.0.371 installed on the machine, but that should not be an issue as there can be side by side installations.

We've tried manually regsitering the dll, but no luck.

Need help ASAP...client cannot run any reports. Thank you.

This is a snippet from the log when they tried to run the install yesterday:

8/4/2009, 13:41:05: Terminate

8/4/2009, 13:41:14: ntservice Error: Failed to open service 'w3svc'

8/4/2009, 13:41:14: BOBJMetabase: Could not initialize metabase handler! Ending action..

MSI (s) (2C:24) [13:41:23:782]: Product: Crystal 2008 sp1 -- Error 1904.Module C:\Program Files\Business Objects\BusinessObjects Enterprise 12.0\win32_x86\clientdoc.dll failed to register. HRESULT -2147319780. Contact your support personnel.

Error 1904.Module C:\Program Files\Business Objects\BusinessObjects Enterprise 12.0\win32_x86\clientdoc.dll failed to register. HRESULT -2147319780. Contact your support personnel.

Action ended 13:41:27: InstallExecute. Return value 3.

8/4/2009, 13:41:30: Starting RegisterLanguagePack Action

8/4/2009, 13:41:30: Write new LanguagePacks.xml

8/4/2009, 13:41:30: Closing Document

8/4/2009, 13:41:30: Releasing Data Structures

8/4/2009, 13:41:30: Terminate

Action ended 13:41:39: INSTALL. Return value 3.

MSI (s) (2C:24) [13:41:39:504]: Product: Crystal 2008 sp1 -- Installation operation failed.