My solution:
I actually decided to reinstall.
I was looking through the temp directory again and noticed other additional log files and the one for dotnet20 look like it didn’t finish installing. I read that dot.net 3.5 sp1 installer also updates 2.0 to 2.0 SP2 so maybe it got hung up on configuring/updating the 2.0 files. Not sure, but I decided to reinstall.
Reinstalling wasn’t straightforward, as I couldn’t re-run the dot.net 3.5 installer as it gave me an message saying it could not install 3.5 and would quit. I tried repairing dotnet 2.0 and 3.0 via the control panel but the repair options gave me an error message.
What worked was using the dotnet cleanup tool.
Aaron Stebner's WebLog | Microsoft Learn
I ran it, selecting the option to remove all version of dotnet (1.1 to 3.5). It required a reboot to finish the cleaning. I rebooted manually via Virtuozzo. After I rebooted and I re-ran the clean tool and it finished cleaning.
Next, I then tried install dot.net 1.1 but it said it was already installed. I guess the cleanup tool didn’t uninstall or erase dot.net 1.1 even though I selected to uninstall all versions of dot net. I later read that the dotnet cleanup tool is a “smart” uninstaller as it won’t delete dotnet components it finds necessary for the operation of certain applications on your computer, so I guess 1.1 was not uninstalled for that reason.
After that, I chose not to use the 2.0 installer as I read that dot.net 3.5 sp1 installer would install 2.0 and 3.0.
3.5 install and progress bar weirdness again:
I ran the dot 3.5 installer and the progress bar moved a lot quicker this time, but you know what? Again it got stuck at a 100%, however this time I noticed in task bar that there was another microsoft window that had appearing during the installation process. I clicked on it and it was a warning message about something “terminated in an unusual” way and to click “ok”. i clicked the “ok” button and then the 3.5 installer progress bar moved back from a 100% to about 35% and proceeded installing again, and it actually completed this time as I got the message that 3.5 installed.
Very odd, but it works now. I tested a few asp applications and they work.
These sites really helped out, as apparently it’s not uncommon to get installation problems.
Unified .NET Framework Troubleshooting Guide
http://blogs.msdn.com/astebner/articles/454956.aspx
Updated: what to do if other .NET Framework setup troubleshooting steps do not help
Aaron Stebner's WebLog | Microsoft Learn
The page, on step 5 (see “note” section) explains how dot.net 3.5 sp1 will uninstall 2.0 because it will install 2.0 SP2.
I found out about the dot.net cleanup tool from the advice given here to someone else who got the 100% progress bar hanging problem. Looks like I’m not the only one that this had happened. Anyway some good instructions on this page.
Issue installing .NET Framework 3.5 SP1 on several computers
Microsoft Q&A | Microsoft Learn
Anyway I hope that helps someone. That dotnet cleanup tool was a lifesaver. I still don’t know what process or application terminated in a unusual manner and caused that window to appear, but it will not let the installer continue if you don’t click “ok”.
Thanks Stephen for your advice. I filed away your note about iis mapping in case I need to do that. So far it looks ok.