Cannot install webcam with -5004 : 0x80070005 error

Trying to install webcam driver on my notebook with WinXP home and
getting the following error:

ëÏÄ ÏÛÉÂËÉ: -5004 : 0x80070005
ó×ÅÄÅÎÉÑ Ï ÏÛÉÂËÅ:
>SetupDLL\SetupDLL.cpp (1924)
pAPP:USB2.0 1.3M Web Cam
PVENDORMAX
PGUID:A87869D7-B133-498C-A347-D9BE109FF6C8
$7.1.100.1248PAK
@Windows XP Service Pack 2 (2600) BT_OTHER 0.64

I found that 0x80070005 means inability to write into some registry
branches. I tried to reset rights via registry editor, but this didn't
help. Also deleting 6 folder inside Installshield folder also didn't
help. Neither trying to run ikernelupdate.exe - when I do this, I also
the following error:

InstallShield Engine (iKernel.exe) could not be launched.
Class not registered.

I am admin on notebook and have all required access rights to
everything, DCOM components have SYSTEM account with enabled
permissions to them.