I solved this problem after a lot of frustration. I tried every suggestion on this site and others.
Then I read something about daemon tools being considered a rootkit by some(?) - so I figured - OK get a rootkit remover.
I ran F-Secure Blacklight and it found over a dozen problems on both my machines that had developed the same issue.
It fixed the problem and daemon tools now installs perfectly on both computers!
I got the error message about "cant oped" and this was my solution. Hope it helps you too!
now Feck0ff and get back to work
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