Did you get this driver
from Nvidia or the HP site? HP wraps the nvidia driver into a modified installer pack that does an extra version check that may cause the failure. If you're using an HP driver, try one directly from Nvidia for your graphics adapter.
What driver version are you trying to install?
And you're SURE you have a 32bit build installed? The installer seems to think differently it seems, double check your build in the System applet in Control Panel.