I cannot install IIS from Add and Remove Programs Icon in Control Panel. It will ask you to insert installation cd or specify an alternate folder to copy from. On examination of the I386 folder, I found out that all the files it cannot locate are actually
there. If you browse to the suggested folder during the installation you will see only the file it is asking for and all others hidden. I am using Windows XP Media Center Edition.
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You may refer the below link: You may receive the "Setup cannot copy the file staxmem.dll" error message when you try to install IIS on a computer that is running Windows XP Professional with SP2: