IEAK7 Branded setup fails

[psytropic]

I created a custom IE7 install with the IEAK but when I run the exe or the msi from the flat directory it fails. I am running WindowsXP Pro on a domain. I have already checked to see if Group Policy has interfered but it has not to the best of my knowledge.

tail of the log is:

00:01.875: INFO: IEAKPRXY>>[END] Call to IEAKInitialize()

00:01.890: INFO: Acquired Package Installer Mutex

00:01.922: ERROR: IEAKPRXY>>Unable to initialize the IEAK

00:01.953: ERROR: Couldn't initialize the IEAK Custom DLL

00:01.968: ERROR: Message to User: The Setup application could not be initialized

00:04.625: ERROR: Setup exit code: 0x00000002 (Unable to initialize the application).

I have googled this and the only other people to have this problem have not had answers.