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error 1001 is blocking my client installation

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I am getting an error message 1001 during my AX client installation and the error is rolling back the installation.

Guys, please help me how to resolve this error. Below are the log details:

2016-01-05 13:13:41Z An error occurred during setup of Components.
2016-01-05 13:13:41Z For more information see: C:\Program Files\Microsoft Dynamics AX\60\Setup Logs\2016-01-05 13-11-53\ClientOba32 Log.txt
2016-01-05 13:13:41Z Common Property Install Path set to 'C:\Program Files\Microsoft Dynamics AX\60'.
2016-01-05 13:13:41Z Installation Path retrieved from registry. Value: 'C:\Program Files\Microsoft Dynamics AX\60'
2016-01-05 13:13:41Z Additional information may be available in the InstallLog files under: C:\Program Files\Microsoft Dynamics AX\60\Setup
2016-01-05 13:13:41Z Common Property Install Path set to 'C:\Program Files\Microsoft Dynamics AX\60'.
2016-01-05 13:13:41Z Installation Path retrieved from registry. Value: 'C:\Program Files\Microsoft Dynamics AX\60'
2016-01-05 13:13:41Z Following are messages from the MSI actions log file Microsoft.Dynamics.Setup.Components.InstallLog, which could include earlier messages, (check the date):
2016-01-05 13:13:41Z Installing assembly 'C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll'.
2016-01-05 13:13:41Z Affected parameters are:
2016-01-05 13:13:41Z setuplanguage =
2016-01-05 13:13:41Z action = install
2016-01-05 13:13:41Z clientbindir = C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\#
2016-01-05 13:13:41Z feature = ClientUI
2016-01-05 13:13:41Z installtype = notransaction
2016-01-05 13:13:41Z assemblypath = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll
2016-01-05 13:13:41Z logfile = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.InstallLog
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z >>Install: Client Start 1/5/2016 1:13:21 PM
2016-01-05 13:13:41Z >>Install: Starting custom action install code.
2016-01-05 13:13:41Z >>Install: Install Action Step: ClientUI
2016-01-05 13:13:41Z >>Install: Registering or configuring file: 'C:\Program Files\Microsoft Dynamics AX\Common\smmphone.ocx'
2016-01-05 13:13:41Z >>Install: regsvr32 "C:\Program Files\Microsoft Dynamics AX\Common\smmphone.ocx" /s
2016-01-05 13:13:41Z >>Install:
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z >>Install: C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\ax32.exe -regserver
2016-01-05 13:13:41Z >>Install:
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z >>Install: During Setup of Client an error occurred. Program run: C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\ax32.exe. Parameters: -regserver
2016-01-05 13:13:41Z >>Install: Error during Setup:
2016-01-05 13:13:41Z >>Install: An error occurred during the Client install custom action step within the Microsoft Dynamics AX components installer. For details, see the previous messages in the log.
2016-01-05 13:13:41Z >>Install: During Setup of Client an error occurred. Program run: C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\ax32.exe. Parameters: -regserver
2016-01-05 13:13:41Z >>Install: at Microsoft.Dynamics.Setup.InstallCommonMisc.RunProcess(String fileName, String args, String displayName)
2016-01-05 13:13:41Z at Microsoft.Dynamics.Setup.ClientUI.Install(InstallDriver installDriver)
2016-01-05 13:13:41Z at Microsoft.Dynamics.Setup.InstallDriver.Install(IDictionary stateSaver)
2016-01-05 13:13:41Z >>Install: Finishing custom action install code.
2016-01-05 13:13:41Z >>Install: Client End 1/5/2016 1:13:21 PM
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z Rolling back assembly 'C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll'.
2016-01-05 13:13:41Z Affected parameters are:
2016-01-05 13:13:41Z setuplanguage =
2016-01-05 13:13:41Z action = rollback
2016-01-05 13:13:41Z clientbindir = C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\#
2016-01-05 13:13:41Z feature = ClientUI
2016-01-05 13:13:41Z installtype = notransaction
2016-01-05 13:13:41Z assemblypath = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll
2016-01-05 13:13:41Z logfile = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.InstallLog
2016-01-05 13:13:41Z
2016-01-05 13:13:41Z >>Rollback: Client Start 1/5/2016 1:13:32 PM
2016-01-05 13:13:41Z >>Rollback: Attempting to remove Client which may have been partially or fully installed
2016-01-05 13:13:41Z >>Rollback: Uninstall Action Step: ClientUI
2016-01-05 13:13:41Z >>Rollback: C:\Program Files\Microsoft Dynamics AX\60\Client\Bin\ax32.exe -unregserver
2016-01-05 13:13:41Z >>Rollback:
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