QT install error 1606: Could not access network location 1\lib\ext\

This all began when trying to update to latest version of iTunes 9.0.3. I first tried running the update via iTunes, and saw this message. Next, I downloaded the update file (iTunes + QT) and ran from my desktop as admin. Still the same result.

I have removed both QT and iTunes from my computer. I have deleted the temp folder (C:\users\owner\AppData\Local\Temp), restarted computer. Ran QT installer only and still same message.

I did download the Windows Install Cleanup utility, but couldn't use it directly on QT or iTunes as they were already deleted. I did use it to remove the other Apple programs resident on the computer.

Here's the result in the file MSIe1559.LOG:
Error 1606. Could not access network location 1\lib\ext\.
=== Logging stopped: 2/22/2010 10:18:10 ===

QTInstallCode.log:
############################
QuickTimePreInstallProc Enter
Moving QTPrefs file (if necesary) to new location...
Getting QT preinstall info...
Getting QT process count...
Ignoring process 'msiexec.exe' as possible QT process...
Ignoring process 'msiexec.exe' as possible QT process...
Ignoring process 'msiexec.exe' as possible QT process...
Current QT processes = 0
GetQTProcessCount() reported 0 QT active processes.
Will check for QT version: 7.65.17.80
WARNING: did not find "C:\Windows\system32\QuickTime.qts"
GetQTInstallInfo: No QuickTime installed
Final result: 2 (error=0)
QuickTimePreInstallProc Exit (error=0)

QuickTimeInstallerBD8.log:
=== Logging started: 2/22/2010 10:17:53 ===
Command Line:
Information on cabinet file 'C:\Users\Owner\Desktop\QuickTimeInstaller.exe'
Total length of cabinet file : 32370330
Number of folders in cabinet : 1
Number of files in cabinet : 4
Cabinet set ID : 0
Cabinet number in set : 0
RESERVE area in cabinet? : no
Chained to prev cabinet? : no
Chained to next cabinet? : no

fdintCABINET_INFO
next cabinet =
next disk =
cabinet path = C:\Users\Owner\Desktop\
cabinet set ID = 0
cabinet # in set = 0 (zero based)

fdintCOPY_FILE
file name in cabinet = QuickTime.msi
uncompressed file size = 28214272

fdintCLOSE FILEINFO
file name in cabinet = QuickTime.msi

fdintCOPY_FILE
file name in cabinet = AppleSoftwareUpdate.msi
uncompressed file size = 2083840

fdintCLOSE FILEINFO
file name in cabinet = AppleSoftwareUpdate.msi

fdintCOPY_FILE
file name in cabinet = QuickTimeInstallerAdmin.exe
uncompressed file size = 79152

fdintCLOSE FILEINFO
file name in cabinet = QuickTimeInstallerAdmin.exe

fdintCOPY_FILE
file name in cabinet = AppleApplicationSupport.msi
uncompressed file size = 11535872

fdintCLOSE FILEINFO
file name in cabinet = AppleApplicationSupport.msi

Executing: "C:\Windows\system32\msiexec.exe" /i "C:\Users\Owner\AppData\Local\Temp\IXP337.TMP\QuickTime.msi"
Returning: 1603