DirectX Error Durring Installation.

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I have Windows XP and DirectX 9.  At the very end of the mtgo installation an error comes up that says...

"DirectX Runtime with Updated Managed DirectX

That folder is invalid.  Please make sure the folder exists and is writable."   After I click ok another comes... 


Problems installing DirectX". 

I updated my video and sound drivers in response to this.  The installation still creates a folder with everything in it the ap files just give me errors though.  In the Magic Online folder is a directx installer and various directx files it seems to have unloaded.  I'm thinking it wants to unload these to some specific folder but isn't able to make it?  I don't know why mtgo is installing directx for me when I already have it.

Any ideas what is going on?
One thing I've thought of is I installed a new operating system on my computer and for some reason the local disk is H instead of C.  If Magic Online is trying to put directx files in some C folder I could see it creating an error since that file is unwriteable.  Just an idea.  I'd have to do a clean install though.  And I had to download all these drivers and do updates and everything rather not go through all that just as a hunch.
Are you using a laptop, in that case, what brand&model?
Do you have any external drives or memorysticks attached?
Are you running some software that emulates disks?
Multiple OS's?  
Its a desktop, I dont have any external drives or memory sticks and don't think any software emulating a disk.  My computer with Vista got messed up and I cleaned the hard disk then realized I didn't have an installation or repair disk so I took one for another computer of Windows XP so thats why I guess everything is in H:.  I've downloaded the updates, Windows service pack 3 and .net frameworking 4 everything else seems to be working fine except mtgo. 
Yeah. ok.
I seem to remember doing something similar once upon a time myself.
Where I had a messed up harddrive, whereas I chose to install a new windows to another harddrive.

I have purged from memory all the implications of such an act, but it certainly made it becoming a headshaking hassle.

this is a long stick with two smelly ends, and I am not sure of which end to grab, so to say.

Ok, let's stick to the purely technical-working-computer-part...

I would suggest you find or borrow an external harddrive from someone, and copy over all essential data to it. You know, the usual my documents, pictures, favorites blahblahblah.

Then, reinstall windows. A clean install. No restore or repair-crap. A CLEAN install. Wipe everything. Empty.empty empty. You'll loose everything, except the stuff you copied over to the external drive.

It shouldn't not give you any more bollocks about any H: 

I chose to take it from this end of the stick, because if I touch the other end, we'll be spening a vast amount of time figuring out a solution, tha seemingly might be good, but will give you another headbutt the next time you try to install something differently.