Cannot Install SQL Express On XP Media Center Edition

Hi,
This is my first post. I am trying to install SQL express on my PC but it keeps on having this error:
"encountered an unexpected error in datastore. The action is setdialogs..."

I have searched far and wide for a solution to this problem. Some solutions worked for others, but none worked for me so far.
I don't have a previously installed sql version on my laptop. But just to check, I followed the steps in using msiinv.exe to detect any previously installed software. I am pretty sure that there was no sql server entry in the output file.

I have all the requirements, installed (.net framework 2.0,etc). I have all the latest Windows updates (except XP SP3).
My laptop is well above the minimum requirements for sql express ( Core 2 processor, 2 gigs ram, 7Gigs free space).

I have the Protected Storage service running (which I found out was required to install sql server).
I even followed the directions to fix Cryptograhical services.

I am runninng out of options here.

Thank you for your replies.

Here's my log:
[code]
Microsoft SQL Server 2005 Setup beginning at Fri May 30 11:20:48 2008
Process ID : 564
c:487084033731d74b14setup.exe Version: 2005.90.3042.0
Running: LoadResourcesAction at: 2008/4/30 11:20:48
Complete: LoadResourcesAction at: 2008/4/30 11:20:48, returned true
Running: ParseBootstrapOptionsAction at: 2008/4/30 11:20:48
Loaded DLL:c:487084033731d74b14xmlrw.dll Version:2.0.3609.0
Complete: ParseBootstrapOptionsAction at: 2008/4/30 11:20:48, returned false
Error: Action "ParseBootstrapOptionsAction" failed during execution. Error information reported during run:
Could not parse command line due to datastore exception.
Source File Name: utillibpersisthelpers.cpp
Compiler Timestamp: Wed Jun 14 16:30:14 2006
Function Name: writeEncryptedString
Source Line Number: 124
----------------------------------------------------------
writeEncryptedString() failed
Source File Name: utillibpersisthelpers.cpp
Compiler Timestamp: Wed Jun 14 16:30:14 2006
Function Name: writeEncryptedString
Source Line Number: 123
----------------------------------------------------------
Error Code: 0x80070002 (2)
Windows Error Text: The system cannot find the file specified.

Source File Name: cryptohelpercryptsameusersamemachine.cpp
Compiler Timestamp: Wed Jun 14 16:28:04 2006
Function Name: sqls::CryptSameUserSameMachine:rotectData
Source Line Number: 50

2
Could not skip Component update due to datastore exception.
Source File Name: datastorecachedpropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:27:59 2006
Function Name: CachedPropertyCollection::findProperty
Source Line Number: 130
----------------------------------------------------------
Failed to find property "InstallMediaPath" {"SetupBootstrapOptionsScope", "", "564"} in cache
Source File Name: datastorepropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:28:01 2006
Function Name: SetupBootstrapOptionsScope.InstallMediaPath
Source Line Number: 44
----------------------------------------------------------
No collector registered for scope: "SetupBootstrapOptionsScope"
Running: ValidateWinNTAction at: 2008/4/30 11:20:48
Complete: ValidateWinNTAction at: 2008/4/30 11:20:48, returned true
Running: ValidateMinOSAction at: 2008/4/30 11:20:48
Complete: ValidateMinOSAction at: 2008/4/30 11:20:48, returned true
Running: PerformSCCAction at: 2008/4/30 11:20:48
Complete: PerformSCCAction at: 2008/4/30 11:20:48, returned true
Running: ActivateLoggingAction at: 2008/4/30 11:20:48
Error: Action "ActivateLoggingAction" threw an exception during execution. Error information reported during run:
Datastore exception while trying to write logging properties.
Source File Name: datastorecachedpropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:27:59 2006
Function Name: CachedPropertyCollection::findProperty
Source Line Number: 130
----------------------------------------------------------
Failed to find property "primaryLogFiles" {"SetupStateScope", "", ""} in cache
Source File Name: datastorepropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:28:01 2006
Function Name: SetupStateScope.primaryLogFiles
Source Line Number: 44
----------------------------------------------------------
No collector registered for scope: "SetupStateScope"
00E4CFC0Unable to proceed with setup, there was a command line parsing error. : 2
Error Code: 0x80070002 (2)
Windows Error Text: The system cannot find the file specified.

Source File Name: datastorepropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:28:01 2006
Function Name: SetupBootstrapOptionsScope.InstallMediaPath
Source Line Number: 44

Class not registered.
Failed to create CAB file due to datastore exception
Source File Name: datastorecachedpropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:27:59 2006
Function Name: CachedPropertyCollection::findProperty
Source Line Number: 130
----------------------------------------------------------
Failed to find property "HostSetup" {"SetupBootstrapOptionsScope", "", "564"} in cache
Source File Name: datastorepropertycollection.cpp
Compiler Timestamp: Wed Jun 14 16:28:01 2006
Function Name: SetupBootstrapOptionsScope.HostSetup
Source Line Number: 44
----------------------------------------------------------
No collector registered for scope: "SetupBootstrapOptionsScope"
Message pump returning: 2

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