Please try these steps first:
How to solve Internet Explorer 8 installation problems:
If this does not work, please do the following:
Try install IE8 manually, not from Windows Update
If you are still having difficulties do the following:
First please confirm you have logged on an account with administrative privileges.
If the issue still occurs, let’s try the following method to reset the permissions:
1. Please download the subinacl.msi file from the following link and save the installation patch onto the Desktop:
2. Please go to the Desktop and double click the downloaded file.
3. Please select the C:\Windows\System32 folder as the Destination Folder during the installation. Later we will use this tool to reset the permission settings on the current machine.
Note: If the UAC (User Account Control) window is prompted for permission to continue, please click Continue.
4. Click Start, in the Start Search bar, type: “notepad” (without quotes) and press Enter.
5. Copy the following commands and then paste them into the open Notepad window:
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=administrators=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=administrators=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=administrators=f
subinacl /subdirectories %SystemDrive% /grant=administrators=f
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=system=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=system=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=system=f
subinacl /subdirectories %SystemDrive% /grant=system=f
6. After pasting the above commands, please close the Notepad window. Choose Save when you are prompted to save the file. Type “reset.bat” as the file name and choose Desktop from the left panel as the save location.
7. Refer to the Desktop and right click the reset.bat file, and then choose “Run as administrator.”
8. You will see a DOS-like window processing.
Note: It may take several minutes. Please be patient. When it is completed, you will be prompted with the message: “Finished, press any key to continue”.
Try to install the updates again.
This issue can be also caused by third-party security programs such as firewalls and anti-virus software. You can disable or remove them to check the issue.