I have tried everything I could think of and what others have suggested:
1. Safe Mode - couldn't find the Windows Installer
2. Regular - when it goes to display the panel after extracting the install files, it simply quits - goes away.
3. Copying the CD onto my hard drive.
4. Installing from the CS3 internal setup program - same as 2 above.
5. Disabling AntiVirus and Firewall and UAC - same as 2 above.
6. Running 4 and 5 from the Hard Drive - same as 2 above.
7. Setting Windows 7 compatibility - same as 2 above also from the hard drive as well.
8. Changing the .XML files per an Adobe Blog comment - same as 2 above.
If you can think of something else to try, please let me know. I am game.