Make sure you have closed ALL RUNNING Programs (Antivirus,ICQ,QQ...).
If the problem is still there....
When you try to install a program that uses InstallShield on Windows XP, you receive:
The install Shield engine 'ikernel.exe' could not be launched - Error loading type library / dll.
This error will occur if any of the following files are NOT located in the %SystemRoot%\System32 folder:
To fix this problem, expand the files from the Windows XP CD-ROM, by opening a CMD.exe prompt and typing: