Uh, dunno what your gfx card's problem is precisely. Here's some info:
Quote: " "%1 is not a Win32 application"."
See %1 is a variable which usually refers to the path passed to the executable. You'll see this a lot in your registry, example "C:\blah\paint.exe %1". So maybe the entry now reads "%1" instead.
In regard to the video card and etc, try this:
> Turn off your PC and remove the gfx card.
> Boot with the onboard graphics.
> Uninstall the nVidia stuff completely and any related software.
> Download CCCLeaner and run a registry check. Delete all the keys that are associated with nVidia software or drivers (and any others you know to be safe).
> Switch off your PC and install your graphics card
> Boot into your BIOS and disable your on-board graphics and ensure that the primary/only display is your graphics card's port.
> Start windows up and try running the installation again.
This basically solved a similar problem with a friend's PC. Anyway, dunno how useful any of this is. Hopefully it gets you somewhere or even fixes the problem.
Good luck