Error 1935 when installing Dynamics NAV 5.0 SP1

When I did try to install the NAV 5.0 SP1 client I run into an error 1935. This may happen on Vista and Windows 2008. Don’t know if Windows 7 also have this problem.

Error 1935; an error occurred during the installation of
assembly component {98CB24AD-52FB-DB5F-A01F-C8B3B9A1E18E}. HRESULT:0x800736CC.

The solution is simpler then it seems. You need to install Microsoft Visual C++ 20005 SP1 Redistributable pack. Remember if you are running on a 64 bit system you need to install both x86 and x64 package.