>I forgot to mention that I am installing from a Virtual Clone drive, rather from a DVD. Perhaps this is a case where I should copy the files to a DVD and install it that way? I have successfully done installations from Virtual Clone drives in the past with no problems though.

Just spotted this in the log that seems to confirm its a problem with the installation file:

[06/25/11,10:40:51] Microsoft Visual Studio 2010 Ultimate - ENU: [2] ERROR_INSTALL_PACKAGE_INVALID returned in CRootComponent::Install; the following file is invalid: f:\vs_setup.msi