The problem that you are running into isn't specific to the SF install but rather the InstallUtil.exe program that is used to launch the installer. You might try uninstalling SF altogether and try again....but more than likely you will have the same results.
Be sure that you have admin permissions when installing as well. If the install fails after a complete SF uninstall and re-install, then you can start weeding through some of the other items I mentioned.
Note: The most likely culprit is a .NET framework issue. This is also the most elusive. Other things (including VS) will appear to work, yet there is a core framework install issue. I have seen this a number of times...and it is always a little tricky getting it back together as well. Automatic Updates are a very common cause of this issue...we see it often.
EventType : clr20r3 P1 : installutil.exe P2 : 2.0.50727.1433 P3 : 471ebfbb P4 : mscorlib P5 : 2.0.0.0 P6 : 471ebc5b P7 : 1295P8 : 14 P9 : system.io.filenotfoundexception
Everthing is stuck now?