Windows Installer Error 1067 for Skype

User Permissions
If you're on a Windows XP username that doesn't have administrative privileges, the error will occur. This means that you've been blocked from installing applications and access to the Installer folder in Windows XP has been turned off. Have the administrative user for the computer access and install the software or turn your account into an administrator account to install Skype. The computer may have to be restarted to complete this.
Other Applications
Exit out of all other running applications that may cause interference with the Windows Installer. Any other installation software, browser upgrades or video applications could cause the 1067 error to occur. Keeping applications closed will make the process faster and eliminate the installation errors. Restart the computer to automatically exit out of any background processes that cause the error too.
Msiexec Software
The installation of Skype and other software in Windows XP uses the Windows Installer application known as Msiexec.exe. The application may have multiple instances open that cause error 1067. Press 'Ctrl-Alt-Delete' to load the Windows Task Manager. Click on the 'Processes' tab. Click on the 'Image Name' category to sort the list alphabetically. Look for any instances of 'Msiexec.exe. Right-click on it and select 'End Process Tree.' Restart the installer and the error will go away.
Viruses
Malware and other Internet-based viruses could disable the Msiexec.exe application from running and cause the 1067 error any time you try to install Skype software. Restart the computer, press 'F8' and select the 'Safe Mode.' Run anti-virus software to remove any malware or other issues with the computer. Once the computer is healed, run the installation process again and the error will disappear.