Activex component can't create object: 'SPSystem.System'

Hi All,

I am trying to install SSRS 2008 x32 on 32bit Windows Server 2003, while installing I am getting error "ActiveX component can't create object: 'SPSystem.System'". Can antbody help me out in resolving this issue.

Below is the screenshot that explains the issue better. Command prompt says issue with .NET Framework 3.5 installation but "In Add Remove Programs" we can see 3.5 SP1 already installed.

Thanks in advance,

MChandra