Unable to install applications

Hello,
I am using an IBM T30 laptop. I am facing a problem from last couple of days. I am not able to install any application on my computer. I have to try several times to install the application and fortunately if the applications gets installed it does not open. When I click on the setup of office 2003 and Mcfee, I get error like file corrupt or CRC failed.
I thought that it might be happening due to some Virus. I scanned the disk for Virus however no Virus was found. I also formatted the disk and installed a fresh copy of windows XP. Then I tried to install the applications and software’s however I still face the same problem. Now im also facing the problem with Windows updates.
Can any one please suggest if this is a problem with the hardware or something else?

Download and run anti malware from http://www.malwarebytes.org

Do the same with Hijack This.

Hi Don,
Thanks for the reply. I downloaded the anti malware from the above link. I scanned the PC after installing the setup however there was no infections found. You also wanted run the anti malware with something called 'Hijack this', i am totally unaware what this is.
Would you please suggest me if there is anything more i can do here fix my PC?

Search Google for the Hijack This Download. When you run it, it will show all the running processes on the PC. Post the log here.

HI Don,
PLeasee the the log below.
Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 8:07:17 PM, on 12/5/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0013)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\savedump.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\ibmpmsvc.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\WINDOWS\system32\ctfmon.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\wuauclt.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = about:blank
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
O4 - HKLM\..\Run: [ATIModeChange] Ati2mdxx.exe
O4 - HKLM\..\Run: [SynTPLpr] C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [KernelFaultCheck] %systemroot%\system32\dumprep 0 -k
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O23 - Service: Ati HotKey Poller - Unknown owner - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: IBM PM Service (IBMPMSVC) - Unknown owner - C:\WINDOWS\system32\ibmpmsvc.exe

--
End of file - 2142 bytes

It looks good to me. I don't see anything wrong. Something else is blocking the installs. It could be a permission problem.

No it is not a permission problem. Can it be due to some window installation problem?

I don't think so. Here are a few things to try in any order you want.

Try the installation in safe mode.
Update windows installer.
Run chkdsk /r
Reset or set the administrator password, login as administrator and try the install.

The last one can be a little tricky. I'll explain it better if you want to try it.