After installing Windows 7 on my older laptop (2006 Sony Vaio, VGN-SX330P) from XP I had problems installing Adobe Reader X or previous versions with the same error, The message Window is from Windows Installer as follows: An error occuued during the installation of assembly component: Error 1935:
I tried several of the methods suggested from a Google search on Error 1935, with no success. One was to do a repair on Office, which I did to no avail (Office 2010). Another was to use FSUTIL utility which did not work. There were several others that did not work including this one from Adobe: http://kb2.adobe.com/cps/403/kb403969.html
However the hint in the one from Adobe search on Error 1935 did the trick: http://kb2.adobe.com/cps/403/kb403465.html
This Knowledgebase item suggested repairing Vista, so doing the re-installation of Windows 7, using the Upgrade method and repair, allowed me to successfully install Adobe Acrobat Reader X.
I did try the other suggestions first in the KB item, but the repair method worked while the others did not.
Also note: During the repair, one significant repair pop-up window appeared, stating a repair to .NET Framework version 4 was being done. This may be the real fix, but would not have re-installed .NET Framework for any time soon. My suggestion is to forget about the other suggestions first, and go right to repairing Windows. The hour it took to repair Widows was much shorter than doing all the other stuff.
Also, before installing Adobe Reader X (after the repair to Win7), I did turned off my virus protection and changed the Windows Update settings to "Never check for updates (not recommended)." You can get to the Windows Update settings by Start/All Programs/Windows Update: Then select Change settings: Then on the pull down menu unter Important updates, select "Never check for updates (not recommended)."
Be sure to turn on the virus protection and change back the Windows Update setting after installation.
One benefit of doing the repair was seeing improvements reported by the Windows Experience Index assessment. CPU from 4.5 to 5.0 (11.1 % improvement); Memory Ops per sec from 4.5 to 5.0 (11.1%); Graphics from 3.6 to 3.7 (2.8%); Gaming Graphics had no improvement at 3.6 (0.0%); and Primary hard disk transfer rate from 4.8 to 5.9 (22.9%).
It would be nice to know if anyone using this method saw any improvements and of course if this correct their 1935 error.