You mentioned this problem only occurs on some W2K machines, so I assume it works OK on others?
Was there something different in the environment when you installed on the machines that worked, as opposed to the machines that did not? For example, were you logged in as the end-user when installing Runtime? You may wish to try installing again, ensuring you are logged in as the same user as will ultimately be using runtime.
Pleaes let me know how you prceed.
(I have removed you email address from your posting so it is not picked up by spam robots)