Install problems

I am running xp pro on a 32 bit system and I did a clean reinstall with a full format.
But now when I try and install a program I get a popup saying " Please go to the control panel to install and configure system components"

I searched and found a setup.exe in system 32 and deleted it, but the popup still persists, any ideas on how to fix this.
if it means a new install I will do it.