If you are running into the issue please see below for a fix option to fix your cs3. This issue can also affect cs4 so the solution may or may not work for that version.
Vista — Solution for many receiving the “component install failed” error
Hi all this may or may not work for you, however this is what I had done and what helped me and got this to work.
First of all, scream in a pillow - We all understand.
MOST Importantly be sure that you are an admin user before doing any of this. Also be sure to back up your registry and/or drives before proceeding with any fix, just a CYA (cover your A$$) thing. You can back up your registry easily using the eusing free registry cleaner.
1/ uninstall instances of adobe, flash, macromedia programs and components from the add/remove programs
2/while you are at it might as well remove any other programs that are not needed
3/After any uninstallations continue on by running the windows installer cleanup (if you click on it to run it and receive an error “permission denied” then you didn’t run it as an admin. Do run as an admin open the file that the windows installer cleanup program is in, right-click and run as an admin. Remove any instances of Adobe and Macromedia.
4/after that is complete move on by using a registry cleaner — Try Eusing Free Registry Cleaner. You can find this on cnet.com under the downloads. Clean up the invalid file or folders and move on.
5/ Reboot and run both the registry cleaner and the windows installer cleanup again.
6/ Reboot and then run the CS3 Clean up script.
8/ Attempt to reinstall your CS3 Product.
9/ Do Cartwheels around the house and take a nice sigh of relief as you are not crazy it is a program issue.