Hi,
Method 1:
Register the File Manually
To register a specific file again in the registry, while you are working in Microsoft Windows, follow these steps:
a) Click Start and then type cmd in the start search bar.
b) Right click on the result and select Run as Administrator.
c) In the Open window, type the following command, and then hit Enter.
RegSvr32 <filename>
Where <filename> is the name of the file specified in Error 1904 (msxml4.dll in your case)
You should receive a message that the file is now correctly registered. If you receive a message that the file is not registered, try the next method.
Method 2:
Clean-Start the Computer
This might be happening if any of the background programs is conflicting with the installation process. You may try to install the program in a clean boot state and check if the installation process goes well. You can start Windows 7 by using a minimal set of drivers and startup programs. This kind of startup is known as a "clean boot." A clean boot helps eliminate software conflicts. Follow the link given below to configure your computer to clean boot state.
How to troubleshoot a problem by performing a clean boot in Windows Vista or in Windows 7
http://support.microsoft.com/kb/929135
Note: After you have finished troubleshooting, follow step 7 in the article to boot to normal startup.
Method 3:
If that does not help you may try to disable the User Account Control (UAC) temporarily and check if that helps.
Note: It is not recommended to turn off UAC. However, it is your choice on how you want to run your computer. Also, turn it on once you are done with the troubleshooting steps.
Method 4:
I would also suggest you to uninstall and reinstall the program and check if it helps.
Refer the below articles:
http://windows.microsoft.com/en-US/windows7/Uninstall-or-change-a-program
http://windows.microsoft.com/en-US/windows7/Install-a-program