Thank you both Paul and Jean. Everything works now after I flushed out the residuals. Your advice works!
I had to perform one extra task after my manual regediting because the Roxio installer would not recognize my CD key (even though the key was validated before). I followed the steps outlined in Roxio Knowledgebase 000116CR.
I was holding my breathe while waiting for the install to complete because it failed so many times previously. Alas, it completed all the component installs without a glitch.
I believe the install went smoothly this time because it was due to a "good s scouring" of the residuals that the XP-Add/Remove and also my Registry Cleaner could not get rid off.
Thank you Paul and Jean for your timely advice.
btw, do u have any recommendation for a good non-techy registry cleaner? I am currently using Registry Booster 2