JDK installer fails on Windows XP when file "C:\Program" is present

When file "C:\Program" is present on system and I install JDK to default location "C:\Program Files\Java\jdk1.5.0_03" I get following error dialog in the end of JDK installation process (before JRE installation starts):

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Error - Java(TM) Update

Java(TM) Update cannot retrieve version information from targeted directory
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It is for Windows installer JDK 5.0 Update 3 build 05.
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