I moved the share containing the msi from a 2003 server with File Server Resource Manager Quotas to a 2003 Server without it and everything started working for assigning the msi to users. Still not working for computers.
I tried every recommended solution and nothing was helpful. We have Win XP clients and 2008 R2 domain controller. After a day of trying solutions i found the entry of giddyflea on EV100422
(Cannot open or run MSI files from network share) that there is a sysvol compatibility issue w/ Win XP and 2008 R2.
The solution is simply: Apply this GPO to your DCs --> Comp Config\Admin Temp\System\Net Logon\Sysvol Share Compat.
I had EventID 102 and 108 on a machine, when I tried to install the ISA Firewall Client from an assigned Software installation policy. All other computers in the domain installed fine; there was nothing different about the computer accounts. After I upgraded the machine from W2k SP3 to SP4 and this resolved the issue.
I had the same problem with a customized installation of McAfee VirusScan 7.10. It did not deploy with the Events 102, 303 and 108 logged in a row in the PC’s event log. Eventually it turned out that the problem was with the packet itself, which was damaged. After building a new customized installation of this application, the software was smoothly deployed again.
In Active Directory, if you ever change (patch, etc) an .MSI that you are deploying via GPO, make certain you redeploy the package from within the GPO so that the GPO can synchronize with the new information added by the patch. We had an antivirus product that updated the .MSI administrative installation source several times a week. As we added new machines to the domain, none could install the product and displayed event ID 102, followed by 303 and 108 and finally Userenv 1000. Check this before you look into permissions.
Make sure your distribution point is a Windows 2000 server. We had the same problem when trying to distribute "msi" packages from an NT 4 member server within a Windows 2000 AD domain.
As per Microsoft: "The machine account for the workstation does not have permissions to the share or file system that holds the source files for the package. When a workstation runs Group Policy, it does so in the context of the machine system account for the workstation." See ME278472
for more details and resolution.