Im having exactly the same problem on windows 2003 32 bit server 
the installer started by saying there wasnt enough disk space to run firstly, weird as the drive had 14gb free, so ichose the same drive and it carried on
Then got the error re c++ 2008 so let the cf instal add it for me
Checked in add/remove programs and there it was
restarted the installer, got the same message
restarted the server and got the same message
so i unsinstalled c++ 2008 and downloaded it myself from the micrososft site and installed it
re ran the installer and still get the same error
just keep going round in circles.
I can confirm I have downloaded the 32 bit versions of cf`10 and the 2008 redistributable and just not getting anywhere
Any help would be really appreciated please !!!!!