“Error 1935” is an error that occurred at the time of Assembly component installation. Users who are facing “Error 1935”, at the time of installing Office 2007 or 2010 or any of the Office applications such as Excel, PowerPoint, etc. can remove the error by restarting the system and then running the setup again. But if doing this also is not solving the issue, then try the below given methods to fix the problem:
1. Use the “System Update Readiness” tool
To download the “System Update Readiness” tool for 32 bit version of Windows 7, follow the steps:
Microsoft offered this tool after concerning the inconsistency that was found in the Windows servicing store. But only the users with Windows 7 or Windows Vista operating systems can make use of this tool.
In this process, firstly you have checked whether the installed program is the latest version of the Microsoft .NET Framework or not. Follow the steps to carry out this:
If ‘error 1935’ still continues to occur, try to install Microsoft Office again by uninstalling and reinstalling .NET Framework from the computer.
Note: Below described ‘Cleanup Utility’ should only be used once the above given option is tried.
Follow the below steps to uninstall .NET Framework components:
Note: “.NET Framework versions” that are part of the Windows OS, can’t be removed.
The same ‘Error 1935’ can also occur during the installation of the Office 2010’s Service Pack 1 and Service Pack 2. This occurs because of the interference between the Windows Installer and Windows Search or another module in the assembly file copy process or during the application of other updates such as a hotfix for Microsoft .NET Framework components.
To resolve the aforementioned issue, select and use one of the below mentioned steps:
1: Try the installation of Office 2010 SP2 again
2: Discontinue the “Windows Search Service”
3: Carry out a clean startup, and apply Office 2010 SP2
4: Now by using Microsoft Office.com/Setup Update, install all available updates & apply Office 2010 SP2
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Source: http://office.com-setupinstall.com/facing-error-1935-during-installing-microsoft-office-2007-or-2010/