This error seems to have been reported several times but could not find a definite solution, as the suggestions work for some and don’t for others but you may try the following:
1. Extract the file mscoree.dll from netfx.cab in the i386 directory of your original OS installation media or network path.
2. Copy mscoree.dll to %windir%\system32.
3. Rerun your vs setup.
You can also try this:
1. On the second good machine, copy over gacutil.exe and Microsoft.mshtml.dll
2. Run the FX install on the machine that's failing.
3. When the failure happens, run gacutil /i Microsoft.mshtml.dll on the files you copied over
4. If the install allows you to continue, continue.
5. If it doesn't, quit and retry the install.
Let me know the result.