In general, this error can be caused by a number of different issues and can occur with many different drivers and OS versions.
Common fixes would include:

• Not enough Free Space - Verify that the hard drive you are using has enough free space to uncompress and install the driver. If very little space is available, you can try uninstalling any unused programs as well as clearing your temp files and browser cache to free up some space. You can try running CCleaner to clean out any temp files/cookies/etc.


• Conflicts with other software - Temporary disable any Anti-Virus software, Firewalls or similar programs to help rule out a conflict and then try again to see if the same issue persists. You could also boot Windows with minimal startup programs by going to Start -> Run -> type 'msconfig', and under the "Startup" tab, disable any unnecessary Startup items (or all), hit apply and reboot.


• "Clean Install" the video drivers - With the latest Nvidia graphics drivers 260.xx and later, during the install after the drivers uncompress, choose a "Custom/Advanced Install", and then check the box to "Perform a Clean Install"


• Windows Issue - Ensure that you have all of the latest Windows updates and service packs installed. This issue can sometimes occur due to missing service packs (with XP). Or with Win7 if you are using SP1, make sure you have all the latest updates.
• You could also try using the aformentioned CCleaner to scan the registry for errors. (Make sure to backup the registry first!)
  
  

  *Before making any changes to the registry, it is HIGHLY recommended to backup the registry in the event of any problems.
  View this link for information on how to backup the registry.

• Windows IRPStackSize Issue -  The most common fix for this is creating or increasing the IRPStackSize value in the Parameters Key within the LanManServer config. This process requires an edit of your current registry so please do this with caution and create a backup of your registry before changing anything. The default value of the IRPStackSize parameter is 15. There are many reports indicating that a value of 15 is not enough, and only values in the range of 16 to 25 solved the problem.
  
  To do this follow the steps below:
  
  1. Click on Start > Run > regedit & press Enter
  2. Find this key name HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\servic es\LanmanServer\Parameters
  3. Locate IRPStackSize
  4. If this value does not exist Right Click on Parameters key and Click on New > Dword Value and type in IRPStackSize under the name.
  5. The name of the value must be exactly (combination of uppercase and lowercase letters) the same as what I have above.
  6. Right Click on the IRPStackSize and click on Modify
  7. Select Decimal enter a value higher than 15(Maximum Value is 50 decimal) and Click Ok
  8. You can close the registry editor and restart your computer and then retest.


• Windows not accessing the correct install files - This can also occur as a conflict with the Audigy II sound card, part number 6002701. One known workaround is deleting a registry key below. Once again, you should not do so unless you are comfortable with editing the registry and one should always make a backup of the registry before making any changes.
  1. Click on Start > Run > regedit & press Enter
  2. Find this key name HKEY_Current_User\Software\Microsoft\Windows\CurrentVersion\Setup
  3. Delete this key, close the registry editor and then reboot.