I've seen this issue in the past. This error can occur if remnants of a previous install are still detected in the Windows registry. The most efficient way I have found to date to remove unwanted/errant Adobe registry keys is to run the CS3 Cleaner. The CS3 Cleaner was intended (obviously) for the Adobe CS3 suite but it also removes many other Adobe registry keys that are not cleaned up during a normal uninstall. I'd recommend:
1. Uninstalling everything Adobe from Control Panel > Add/Remove Programs.
2. Download/execute CS3 Cleaner.
4. Download/install Reader, Flash, Shockwave, etc.
CS3 Cleaner: http://www.adobe.com/support/contact/cs3clean.html
Reader: ftp://ftp.adobe.com/pub/adobe/reader/win/9.x/9.1/enu/ (choose the smaller of the 3)
Let me know if this helps. If not I'll dig deeper.