To backup the Windows Registry: go to Start, Run, Regedit, click OK, select My Computer, File, Export.
Then copy exactly this text in Notepad saving it as file "User.reg":
Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]
"Common Desktop"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,00,\
50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,44,00,65,00,73,00,6b,\
00,74,00,6f,00,70,00,00,00
"Common Start Menu"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,\
00,50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,53,00,74,00,61,00,\
72,00,74,00,20,00,4d,00,65,00,6e,00,75,00,00,00
"Common Programs"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,00,\
50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,53,00,74,00,61,00,72,\
00,74,00,20,00,4d,00,65,00,6e,00,75,00,5c,00,50,00,72,00,6f,00,67,00,72,00,\
61,00,6d,00,73,00,00,00
"Common Startup"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,00,\
50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,53,00,74,00,61,00,72,\
00,74,00,20,00,4d,00,65,00,6e,00,75,00,5c,00,50,00,72,00,6f,00,67,00,72,00,\
61,00,6d,00,73,00,5c,00,53,00,74,00,61,00,72,00,74,00,75,00,70,00,00,00
"Common AppData"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,00,\
50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,41,00,70,00,70,00,6c,\
00,69,00,63,00,61,00,74,00,69,00,6f,00,6e,00,20,00,44,00,61,00,74,00,61,00,\
00,00
"Common Templates"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,\
00,50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,54,00,65,00,6d,00,\
70,00,6c,00,61,00,74,00,65,00,73,00,00,00
"Common Favorites"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,\
00,50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,46,00,61,00,76,00,\
6f,00,72,00,69,00,74,00,65,00,73,00,00,00
"Common Documents"=hex(2):25,00,41,00,4c,00,4c,00,55,00,53,00,45,00,52,00,53,\
00,50,00,52,00,4f,00,46,00,49,00,4c,00,45,00,25,00,5c,00,44,00,6f,00,63,00,\
75,00,6d,00,65,00,6e,00,74,00,73,00,00,00
Go to Start, Run, regedt32.exe (NOT regedit), click OK, File, Import, browse and select User.reg, click Open.
Then check if folder "C:\Documents and Settings\All Users\Desktop" does exist, if not create it.
Reboot. Log as administrator. Install game software. If it works, log under your user name and try installing other game software.