After launching setup.exe and getting through the first section of the installer, immediately after the service account has been entered and the installer has confirmed the settings, this error appears:

Corrupt registry keys for the windows installer service are the cause of this issue.

To fix the corrupt registry keys Microsoft has a tool that can be downloaded from their web site:

https://support.microsoft.com/en-us/help/17588/fix-problems-that-block-programs-from-being-installed-or-removed

After running the tool, please restart the SMSMSE installer again.