Hmm - this is an oldy--but I'm not sure I remember the drill.
I suspect this indicates a machine on which Windows Defender was previously
installed, and you are now trying to reinstall it, but there are pointers to
an obsolete install location in the registry.
If I'm right about all that, the fix would be to install the Windows
Installer cleanup utility:
http://support.microsoft.com/kb/290301
(there's a download link in the KB article.)
Once installed, run the program from start, all programs, and find anything
related to Windows Defender or Microsoft Antispyware. Remove just those
items, then try the install again.
If this is a shared machine, you might want to uninstall the cleanup
utility--there are risks to idly clicking on the wrong thing in there.