Err msg "Error applying transforms..." pop up in installing 6u3 b03 jre if same jre was pre-installed

Install jre-6u3-windows-amd64.exe on a Windows 2003 64 bit amd machine, if same 6u3 jre is pre-installed, message will come up:

"This software has already been installed on your computer. Would you like to reinstall it?", click on "Yes", an error message will pop up:

"Error applying transforms. Verify that the specified transform paths are valid"

click on "OK", notice the contents in jre1.6.0_03 folder has all been deleted, but the folder remains there. Now if re-start the installation, this installation will go through and complete.

Expected:
1. When click on "Yes" to replace the installation, it should go through and complete re-installation.
2. When removing the jre, the folder should also be removed.