Realtek is known to give or give not proms. can you try to install on another machine without realtek?

I tried install on another computer, with Sigma sound, with the same results. This would point to a corrupt file, but I've downloaded the file 3 times.

Avid prefers SoundBlaster ....

 Yep... Avid doesnot have problems with Soundblaster. That is because the application needs two way communication wirth the soundcard because of syncing audio and video. A lot of cards don't have that. A cheap soundblaster  audigy does.

Caber, if You're on Win XP SP2 see if installing this will help.

I tried pluging in a USB Soundblaster Extigy with no success. The message states that the installer can not find Avid's own install files. Would the sound card have anything to do with that? Any other ideas?

 did you disable the internal card?

Yup. No joy. I've never had a problem installing Avid software. Why would this show up now?

 I think it is related to this:

http://community.avid.com/forums/t/61838.aspx

Let's wait what engineering has to say

Just tro keep the post up to date, I checked http://community.avid.com/forums/t/61838.aspx and realized I had a later version of QT installed. I installed 7.4.5, but it did not correct the problem. Is this automatically reviewed by engineering or is there something I should do?

 I thought I would repost the solution that worked for me, just in case some missed it.

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Oct. 5, 2008

Media Composer 3.0 installation error.  "DigiAudio" Drivers missing.

 I'm having exactly the same problem.   Re-Downloading MC 3.0 doesn't solve this problem and yes, I removed the registry keys and all Avid folders.

 I was able to install MC 3.0 successfully by executing the Avid Media Composer.msi file in the AvidMediaComposer_3.0\Installers\AvidMediaComposer\Disk1\   folder.

 No you don't have to do anything.

I just wanted to update this string.

3.1 installed with no problem.