Microsoft .NET Framework 2.0 setup error on Windows XP SP3

Yesterday I tried to install Microsoft .NET Framework 2.0 because Encarta 2008 need it, but there is an error when I tried to install it...

Error 25007.Error occurred while initializing fusion. Setup could not load fusion with LoadLibraryShim(). Error: 0x80131702

Windows XP SP3 is not listed in the Microsoft .NET Framework 2.0 system requirements. Maybe the future release of Microsoft .NET Framework 2.0 will solve this problem. Until now I was unable to use Encarta on my Windows XP SP3. I have to install Encarta on my other laptop's OS, Windows Vista (Dual boot)

Microsoft .NET Framework 2.0 setup error
Windows XP SP3 - systeminfoUPDATE:
Go to C:\WINDOWS\WinSxS\ and then delete
Policies folder. Restart your computer.