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Check your MSI version.
Or retry your download 11g XE..
I downloaded the last version of the Windows Installer (version 4.5 - WindowsXP-KB942288-v3-x86.exe) for WP Professional SP3, installed and restarted the PC.
I also re-downloaded the OracleXE112_Win32.zip file and made a couple of tries with that. Mention that I extract the files in my local disk and run the setup file from there.
The same error persists.
Any othr idea?