Placebo confirmed I am reading it correctly and that the key is still good.
I already tried restarting.
Which registry entries? I just now did a manual search for such things and did delete a few arma 2 entries, but still no luck.
EDIT: I also tried the installation with my anti-virus software and firewall off to no avail. Also, I am logged in with admin privileges with UAC disabled.
EDIT2:
This is the error I have been getting.
In my frustration I was spamming the next button and found that doing so let me get to the next screen.
To reiterate, from the image above (even without entering ANYTHING for a CD key) pressing the next button would continue the install (I haven't gone any further because this is 6 ways from Sunday fishy).
I KNOW I have a good CD key and I KNOW I have gotten this thing to install before. So why is this happening?