Cannot run Microsoft Document Scanner

When trying to run Microsoft Document Scanner, it brings up a box attempting
to configure Microsoft Office 2003 Professional. After a few mins of loading,
an error comes up saying: "Error 1317: Setup cannot create the folder
C:\Program Files\Common Files\Microsoft Shared\Smart Tag\LISTS. Verify that
the path exists in your system and that you have sufficient permissions to
update it".

I am a member of the Domain Administrators so have full access to the file.
I have tried to do a repair install of Office, but get the same error. I have
also tried to uninstall Office, but get the same error.

When I open up My Computer and try and open the 'Smart Tag' folder, an error
comes up saying "Drive C: is not formatted, do you want to format it now?".

I am completely stumped by this issue, does anyone have any ideas?