If your issue still not resolved, here's how I trouble-shoot similar one, in my system:
[1] Completely uninstall AVAST, disable windows defender and User Account Control, guess using win 64-bit.
[2] Follow clean-up steps, as applicatble: http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1308
[3] Download VMware Player 5.0.0 (VMware-player-5.0.0-812388), as standby.
[4] From msconfig, startup, uncheck all non-windows applications and that includes Avast.
[5] Restart, check Windows Installer is running in Services and try re-installing. If still doesn't work, follow [2], [4], [5] and this time with download [3], upgrade it to 5.0.2 on-line.
Hope this will help.
Thanks.
Atanu