Avid Eleven Rack 1.1.11 are the Windows ASIO driver bundle. Nothing there has anything to do with the ILM. So that installs OK? You see the eleven Rack as an audio device?
You are installing the ILM because you want to use the Eleven Rack editor stand-along or with a third party DAW? If you are running Pro Tools the ILM would already be installed.
You saw this? (top google result for searching for this error)
http://answers.microsoft.com/en-us/w...bc02220?auth=1 Try the tip there from Microsoft support?
At this point you likely should be trying a new clean Windows install on a spare partition or new drive and just the ILM. If that works you then get to install all the other software you need on that Windows partition.
Especially if you've been upgrading Windows installs this is a good thing to do anyhow to clean up the unbelievable mess typical of doing that. Not clear if you have or not, but the bottom line is don't do in-situ upgrades, or if you do and they have problems then try full clean installs. At least if that does not work you have a chance of a vendor reproducing and fixing problems.
Your other choice is give up on the Eleven Rack editor or anything else that requires the ILM.
Trying compatibility mode stuff I would expect to be a waste of time here.