Error:

Microsoft .Net Framework  2.0 SP1 has encountered a problem during setup. Setup did not

complete correctly.

Snapshot:

Workaround 1:

Clean the .NET Framework components completely from control panel and Follow the below 10 steps:

1. Open control panel, click Add\Remove Programs and uninstall the .NET Framework.
2. Run .NET Framework cleanup Utility to clean the .NET Framework components completely.Download: .NET Framework cleanup tool
3. If it prompts for System restart then restart it
4. Navigate to Windows folder: “C:\Windows\”
5. Rename folder “assembly” to “assembly1”
6. Rename folder “Microsoft.NET” to “Microsoft.NET1”
7. Open registry: Click Start | Run | type regedit.exe | Click OK.
8. Navigate To: “HKLM\Software\Microsoft” registry
9. Delete .NETFramework key
10. Install Microsoft .Net Framework 2.0 SP1.

Workaround 2: 

1. Before starting .NET framework installation, disable or pause antivirus software.
2. Disable antivirus firewall                                                                                                           Note: For Net Protector antivirus software disable NPAV shield.
3. Install the .NET Framework 2.0 Sp1.