Windows Desktop Search Beta 3.0 Setup Error

WDS 3.0 Beta 2 installation fails in my environment (Office 2007 Beta 2 TR)
on XP Professional.

In Outlook or OneNote if you "Click here to activate Instant Search" you
begin the install of KB917013. The setup program fails with the following
message:

Windows Desktop Search Setup (3.0 Beta 2)
Setup Error
Windows Desktop Search 3.0 could not be installed on this system.

A required update failed to install. For more details check the log file
(KB915865.log)

Looking at KB915865.log indicates nothing unusual and appears to complete
with "nothing to do".

Looking at KB917013.log indicates that some of the installation file
temporary files & directories can not be found. I am not really sure what
the log files are supposed to indicate.

Any thoughts or suggestions?

DB