As regards to security permissions, seems like Microsoft Office 2010 installation is so sensitive. I have confirmed in several forums that is so common to receive an installation rollback for that reason; and I’m not an exception. This morning while I was upgrading my Office installation from 2007 to 2010 it horribly failed with error 1402.
If you face this situation, a very straight forward troubleshooting is to reset your computer’s security setting to a known good working state. How? Well, it is not quite difficult.
Windows keeps the original INF file where security settings values (used during initial installation) are defined. You can use that file to properly reset security setting to original values, and get rid of incorrect setting that avoid a proper installation process.
So, to overcome this specific error, simply open a command line and type the following command (this one applies to Windows Vista/7/2008):
secedit /configure /cfg %windir%\inf\defltbase.inf /db defltbase.sdb /verbose
This command generates an output file under %windir%\security\logs\scesrv.log with results, so you can check it for a more in deep troubleshooting. Also, this method is used to troubleshoot a bunch of problems related with security settings changing inappropriately (by virus, 3rd-party applications, etc.).
If you want to know more about it check How do I restore security settings to a known working state?