I did the chkdsk in Windows and after reboot. There were filesystem issues and was fixed. Doing disk defrag in Windows and have been going on for hours. 
Seems after not using the laptop since 2011 and my recent uninstalling 60GB of software and deleting personal file, the drive was at 53% fragmentation after 10 passes. The drive is around 50% full now. Hopefully, the two operations will fix the installation issue.
I guess the laptop being an old 2008 model with Core 2 Duo T8100 Penryn with only 3GB DDR2 doesn't help with speed.
I'll let you know if it's resolved, asap.
Thanks!
you do have a 64 bit system.