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Event ID: 1008 Source: MsiInstaller

Source
Level
Description
The installation of <file name> is not permitted due to an error in software restriction policy processing. The object cannot be trusted.
Comments
 
I had this error when trying to install VMWare Server 2.0 on Win XP64.
To fix:
1. Start -> Control Panel
2. Open Administrative Tools
3. Open Local Security Settings
4. Click Software Restriction Policies a. If no software restrictions are defined, right click the Software Restriction Policies node and select New Software Restriction Policy
5. Double click Enforcement
6. Select "All users except local administrators"
7. Click OK
8. Reboot the machine or run gpupdate /force
This error message is usually acompanied by an installation error code. The installer error codes listed in ME290158 may provide an additional clue in troubleshooting this problem.
This problem occurs if the Windows Installer process has insufficient contiguous virtual memory to verify that the .msi package or the .msp package is correctly signed. Microsoft`s article ME925336 provides a hotfix applicable to Microsoft Windows Server 2003 and a workaround for Microsoft Windows XP.

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