GDS is not installing even when its offered at the time of 5.0u11(jre-s) installation

Un-installing of GDS is inconsistent and this creates more issue.
When you try to un-install GDS using System Control Panel ,it is immediately asking you for reboot - to complete uninstall. But after reboot GDS is still there.Try to uninstall it again, now new dialog coming: "Do you really want to remove GD.......", say "yes". Now GDS removed from the machine .
But now I can not install GDS(jre-s.exe) even though when I click the Product offer checkbox.

JDK version:
============
1.5.0_11-b01
OS info:
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WinXP-pro SP-2

If you need test machine which has all setup available
VNC name : urti066
VNC password : urt123
Steps to reproduce:
-------------------
1.
On a clean machine start regedit by typing "regedit" under Start->Run...
2.
Expand the registry to HKEY_LOCAL_MACHINE\\Software\\JavaSoft\
3.
Go to Edit->New...->String Value. Enter "InstallerXmlURL" for the editable name. Double click on "InstallerXmlURL". Enter "http://latte.ireland.sun.com/update/1.5.0/1.5.0_11-ea-b01.xml"
4.
Install jre-1_5_0_11-ea-bin-b01-windows-i586-p-03_nov_2006-s.exe bundle
Bundle can be available from the below location
/net/urts071.india/user4/1.5.0_11-b01/windows-i586
5.
On InstallShield click on Tipical radio button and then click the Accept button
6.
On Google offering page select both GTB & GDS check boxes and install the jre.

7.
After successful installation check for Google Desktop on the taskbar

Expected:
=========
GDS should install properly and should be displayed in taskbar

Actual:
=======
GDS is not installed and its not displayed on taskbar