http://bugs.winehq.org/show_bug.cgi?id=10019
--- Comment #5 from Luke Bratch l_bratch@yahoo.co.uk 2008-06-16 18:47:40 --- Exactly the same as my last response really. To elaborate:
With default Wine (winxp) the installer starts, and starts the .NET 2.0 framework installation, which crashes, and the installer dies. Starting the installer again works fine (the crashed .NET 2.0 installer must have done enough).
To be honest this might as well become a duplicate of bug 10601, since when that works, this will work.