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Presumably you have retried it a couple of times... is your windows up to date?
You could try looking in Control panel - Add/Remove programs and see if you have have it already installed, if so uninstall and retry, just a wild stab in the dark, just noticed I've somehow got 6 instances of MVC++ 2005 on my system but everything works fine.
After you did I found the solution on the microsoft forums, posted by Marilyn O:
This error may occur when the Microsoft .NET Framework installation on the computer is damaged or is missing.
Try the below step to reinstall and repair the Microsoft .NET Framework installation on the computer and later check if you can install the software.
a) Click the Start button, click Control Panel, click Programs, and then click "Turn Windows features on or off." If you're prompted for an administrator password or confirmation, type the password or provide confirmation.
b) Locate Microsoft .NET framework 3.5.1, uncheck the box, click OK and restart the computer.
c) After the restart again open "Turn Windows features on or off" and place a check mark next to Microsoft .NET framework 3.5.1 and restart the computer.
If the above step fails then I would suggest that you manually download and install Microsoft Visual C++ 2005 and 2008 Redistributable Package and check if you can install the software.
In Programs and Features, do you show that you have installed Microsoft Visual C++ 2005 Redistributable and Microsoft Visual C++ 2008 Redistributable? If not, download from the links here.
Visual C++ 2005 Redistributable Package for (X86)
http://www.microsoft.com/downloads/en/details.aspx?FamilyId=32BC1BEE-A3F9-4C13-9C99-220B62A191EE&displaylang=en
Visual C++ 2005 Redistributable Packager for (x64)
http://www.microsoft.com/downloads/en/details.aspx?FamilyID=eb4ebe2d-33c0-4a47-9dd4-b9a6d7bd44da&displaylang=en
Microsoft Visual C++ 2008 Redistributable Package (x86)
http://www.microsoft.com/downloads/en/details.aspx?FamilyID=9B2DA534-3E03-4391-8A4D-074B9F2BC1BF&displaylang=en
Visual C++ 2008 SP1 Redistributable Package for (x64)
http://www.microsoft.com/downloads/en/details.aspx?familyid=BA9257CA-337F-4B40-8C14-157CFDFFEE4E&displaylang=en
Hope this helps.
Marilyn
Here is the link for anyone else who has this problem:
http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_programs/microsoft-visual-c-2005-redistributable-error-1935/9b245369-5053-e011-8dfc-68b599b31bf5?page=1