Well, soory to dissapoint you.
Here is the Fix to the intallation error.
All other complicated stuff doen't work. I have tried it.

1. Uninstall CS3. Do a search for "caps" in the common folder and delete the files. These files store install info)
1a. Restart
2. Physically disconnect the computer from the internet (preserves network security) Disconnect all networks.
3. Disable the firewall.
4. Install CS3( note: the problem is with the "Bonjour" software that Adobe is trying to use. For some reason if it can't reach the internet the installation will fail)
5. Restart
6. Activate/register