I had the same problem (error code 2908). Thanks to Dmitriy and Perica
for their helpful posts.

First I uninstalled the old app engine from the windows control panel.

Then I deleted the following key using regedit:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\
Installer\UserData\S-1-5-21-1123561945-1935655697-1060284298-1003\
Components\AD95649F068525549B26938D7D18FEA7

On Sep 12, 7:01 am, Perica Zivkovic <perica.zivko...@gmail.com> wrote:
> Hi there
>
> thanks to Dmitriy I fixed the problem. When you check add/remove
> programs everything was uninstalled but under
>
> HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\
> Installer\UserData\
>
> there was an entry full with properties needed for google app engine.
> Removing it with regedit helped. Installation of 1.2.5 is working
> now :D
>
> kind regards and thanks to Dmitriy
>
> Perica
>
> On Sep 6, 6:06 pm, Dmitriy <dmitriy.antone...@gmail.com> wrote:
>
>
>
> > Hi!
> > try this 
> > solution:http://www.add-in-express.com/creating-addins-blog/2007/11/12/windows...
> > I had the same problem.
> > Deleting that key helps to solve 2908 problem.

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