Visual Studio 2008 setup fails with "Error 1935: An error occurred during the installation of the assembly......."
Sometimes this error occurs if windows update is scanning for updates at the same time as Visual Studio setup is installing components.
Reboot your machine and restart Visual Studio 2008 setup.
If Workaround 1 doesn’t work,
1. Reboot the machine
2. Disable windows update (start menu -> windows update)
3. Restart VS setup
4. When VS Setup is done, enable windows update (don't forget this step!)
If you run into any problems with either installation or uninstall, please make sure to post in the Visual Studio 2008 Setup and Installation Forum on MSDN.
Hope that helps.