I am afraid b noir who is the expert on this kind of thing isn't around much at the moment.
Some research suggests that that 0x80070005 error may be a permission denied error which links with the second error.
Have your tried running the installer with "Run as Administrator"?
Another possible line to take might be to create another administrator account and try from there, in case there is some weird permission issue in the account you are using.
Have you tried disconnecting from the internet then disabling all security software during the install?
Also have you checked the Windows Event Viewer to check for any error messages around the time of the install failure. That might reveal additional information.
Message was edited by: polydorus
I got the same error:
"Service 'Apple Mobile Device' (Apple Mobile Device) failed to start. Verify that you have sufficient privileges to start system services."
I Disconnected the internet, Disabled firewall and anti-virus and performed 'Run As Administrator' on file, yet i still get the error.