I'm also unable to install the latest version, although I never had an issue with the first release. I'm running the installer on Windows 7 Pro 32bit. I didn't remove the original installation before installing.
The relevant part of the log seems to be:
MSI (s) (20:54) [09:41:20:782]: Hello, I'm your 32bit Elevated custom action server.
SFXCA: Extracting custom action to temporary directory: C:\windows\Installer\MSI4302.tmp-\
SFXCA: Binding to CLR version v2.0.50727
Calling custom action InstallerCustomCommands!InstallerCustomCommands.CustomActions.AddUserToPerformanceGroup
Kan de groepsnaam niet vinden
bij InstallerCustomCommands.CustomActions.NetLocalGroupAddMember(String groupName, String userName)
bij InstallerCustomCommands.CustomActions.AddUserToPerformanceGroup(Session session)
CustomAction AddUserToPerformanceGroup returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)
Action ended 9:41:22: InstallFinalize. Return value 3.