Comment 1 for bug 876154

I have the same problem as well. I am on Windows XP SP3 on my office PC, but can't boot off the CD due to BIOS password restrictions and a hard-disk-first boot order.

When I ran the wubi.exe executable from the Live CD, it got to the point where it tries to install the boot manager (which is supposed to help me boot a Live CD using some clever trick), but it fails with the same error as above. I attach the log file wubi-11.10-rev241.log.

When I ran a standalone version of Wubi with the CD still in the drive, I got the same error, but with a slightly smaller log file (wubi-11.10-rev245.log)