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Trying to install the release package (python 3.2.2 x86-64 .msi, 2.7.2 x86-64 .msi) without elevation fails, even if 'Install just for me' is selected in the installer options, and I have write permissions in the selected install folder.
Under the same account and conditions, other installers (Mozilla Firefox/Thunderbird, git, Beaver Debugger...) can install successfully.
Here the msiexec log file is attached, created with:
 msiexec /package C:\Users\belladrianc\Downloads\python-3.2.2.amd64.msi /l*v install-3.2.2-x64.log

attaching the error message box

This is happening on Windows Server 2008 R2 Enterprise, Service Pack 1 (64-bit)

Just as a note: the following command line with /q instead of /qb works without the need for elevation:
msiexec /q /i python-2.7.3.amd64.msi MSIFASTINSTALL=7 TARGETDIR=C:\Users\Mello\Python27
And it is pretty fast! This was on a Windows 7 machine.
But if I install in a clean Windows XP, I can't get it to work. It seems something is not right with the CRT using this command line.

The command also worked for me on Windows 7 Professional 64-bit, but pythonw does not start, and I could not check if everything in CLI python.exe works as expected.
As you said, something is not right with it, and it also installs just too fast for a real installation.
It did get my python installed, though. Thank you for the info, you must have played with it quite a while

Is this a duplicate of issue 22516?

Pretty much.

Anyone still following this issue, as I posted in issue22516, there is an embeddable zipped version of Python-2.7.X built from source using the PCbuild batch files and vc90 toolset for both x86 and x64 called Python Bootstrap:
http://breakingbytes.alwaysdata.net/PythonBootstrap/
The redistributable msvcr90.dll's are all bundled side-by-side privately with python27.dll as recommended by Windows and does not violate any licensing eulas. The build passes all tests and pythonw.exe works perfectly. Try starting python27/Scripts/idle.bat.
It ...
just ...
works ...
No ...
Admin ...
rights ...
required ...
just ...
unzip ...
use ...
FYI: doing an "administrative install" using msiexec /a (https://www.python.org/download/releases/2.4/msi/) just extracts the msi archive and creates a smaller msi package used to do a local install later. This means that your python launcher and shared library are depending on whatever redistributables you have. You can't install the merge modules into winsxs w/o elevated rights so ...
Also look at Python-3.5 for an embeddable zip file (no admin rights required) altho I think it requires vcredist for vc100 freely available from microsoft.