The literal meaning that I have for the 0004 error is that the installer thinks you are trying to install while in Safe Mode. If Windows is running in Safe Mode, you can't install. You need to reboot Windows and start Windows normally. If you are not in Safe Mode, I don't know what else it might mean, so I recommend that you contact support.
How to reach support (FAQ) - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=2421771&SiteID=2
-steve