It is basically a registry permission problem; I was hoping that Microsoft Fixit would fixit.
There is a more complicated procedure, but let's first try another possible solution.
Go to http://helpx.adobe.com/flash-player/kb/installation-problems-flash-player-windows.html#Ins tall_in_a_firewall_proxy_server_environment and download the 32-bit ActiveX installer. Save it to disk (you may need to right-click, then save target as).
Next close all browser windows, then right-click on the downloaded installer, and select Run as Administrator.
If that also does not complete the installation, you may need to run the SubInACL procedure from http://helpx.adobe.com/flash-player/kb/flash-player-windows-registry-permissions.html
Unfortunately there is no guarantee that this will clear up your problem, as the procedure was created for Flash Player 10. But anyway, let us know how it goes.
Hi Pat, still no luck, thanks for trying though – my system is 32bit does that matter?
If both Microsoft Fixit and SubInACL did not fix the problem, then it becomes very complicated.
I wish the Flash Player developers would update the SubInACL procedure for Flash Player 11, but since the error you are encountering is rather rare, this may not happen anytime soon.
What you will have to find out is what registry key(s) is having permission problems. This can be found out by running the ActiveX installer while Process Monitor is running (filtering the ActiveX installer process). However, the output is very large (ten thousands of lines), and you will have to check each line for a potential registry permission issue.
Sorry, but apart from reinstalling Windows I have no more options.