Installation of Dynamics NAV 2009 hangs during installation of Outlook Add-in

When installing NAV 2009 RTM you can sometimes if you are unlucky end up with an installer that hangs when installing Outlook Add-in. The most common reason for this is that the installation is not able to update the” Outlook.exe.config” file and get stuck in an infinitive loop.
When looking in the event viewer you will get a similar error message to this:

Product: Microsoft Dynamics NAV 2009 Outlook Add-in — Error 27519.Error updating XML file C:Program FilesMicrosoft OfficeOffice12Outlook.exe.config. -2147024891
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