Error 1901: Unable to install an application on my PC

I am at a loss with the following message as it appears while I try to install an application in my PC.
“Error 1901: Error attempting to read for the source install database: C: WindowsInstaller213a4.msi”
My PC configuration is:
Windows XP SP1 Professional
Direct X 9.0a
ATI AIW 8500DV (Driver 6.14.0001.6255)
Pentium 4 2.4 GHz
1 GB SD RAM
80 WD HD
Why does the error occur? I can hardly cope up with the problem and I need a solution badly.
