Server 2008 Windows Installer Service could not be accessed
===

The windows installer service seems to become corrupt after installing terminal services on Windows Server 2008 (not r2).  I get the pop up box that says the windows installer service could not be accessed.  This can occur if the Windows Installer is not correctly installed.  Contact your support personnel for assistance.

The windows installer version is 4.5.6002.18005

Steps I have taken:
1. I have double check the service is running.
2. Gone to a command prompt and started msiexec.exe. It launches help without any issues.
3. Exported a know good registry key for msi and imported it on the box not working.

Any help on how to fix the error would be appreciated.

Thanks!