I wanted to share my solution since it was puzzling me for hours. My solution to Error 2 for Vegas 14 steam edition,

1. Enable all 'disabled' services. I disable services to save RAM, enable them all to 'automatic' if this is not already done.

2. Run 'DISM /online /cleanup-image /restorehealth' in administrator command

3. Run 'sfc /scannow' in administrator command.

4. Uninstall anti virus

5. run 'regedit' and remove entries as outlined in other posts.

I am not 100% sure which step got the installer to progress. All of the above was required to restore my windows to a functional state and from there it was able to install correctly. Hope this helps someone.