Windows SDK Setup: "File failed to download because the user cancelled the operation."

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Probably the most common mail I get from users about the SDK setup is some variation of this mail:

I am attaching the SDK Setup log. Can you tell from this why the SDK will not install on my machine? I have tried twice, but it stops and says "failed to install" just a few minutes after it starts.

and in the log, setup terminates with these strings:

1:02:59 PM Wednesday, July 11, 2007: [SDKSetup:Info] File queued for download - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dexplore.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/DExplore/dexplore.cab size:1971503
1:02:59 PM Wednesday, July 11, 2007: [SDKSetup:Info] File queued for download - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dexplore_layout.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/DExplore/dexplore_layout.cab size:10266211
1:02:59 PM Wednesday, July 11, 2007: [SDKSetup:Info] Beginning download of file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\DExplore\dexplore.cab
1:02:59 PM Wednesday, July 11, 2007: [SDKSetup:Info] Beginning download of file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore_layout.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\DExplore\dexplore_layout.cab
1:03:00 PM Wednesday, July 11, 2007: [SDKSetup:Info] File queued for download - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dbg_x86.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/Dbg/dbg_x86.cab size:15531576
1:03:24 PM Wednesday, July 11, 2007: [SDKSetup:Info] Successfully downloaded the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\DExplore\dexplore.cab
1:03:24 PM Wednesday, July 11, 2007: [SDKSetup:Info] File succesfully downloaded - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dexplore.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/DExplore/dexplore.cab size:1971503
1:03:24 PM Wednesday, July 11, 2007: [SDKSetup:Info] Beginning download of file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dbg_x86.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\Dbg\dbg_x86.cab
1:04:40 PM Wednesday, July 11, 2007: [SDKSetup:Info] Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore_layout.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\DExplore\dexplore_layout.cab. Warning - Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore_layout.cab, because the user cancelled the operation.
1:04:40 PM Wednesday, July 11, 2007: [SDKSetup:Error] File failed to download - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dexplore_layout.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/DExplore/dexplore_layout.cab size:10266211 reason:Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dexplore_layout.cab, because the user cancelled the operation.
1:04:40 PM Wednesday, July 11, 2007: [SDKSetup:Info] Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dbg_x86.cab to C:\Documents and Settings\*\Local Settings\Temp\SDKSetup\Dbg\dbg_x86.cab. Warning - Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dbg_x86.cab, because the user cancelled the operation.
1:04:40 PM Wednesday, July 11, 2007: [SDKSetup:Error] File failed to download - source:https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa/dbg_x86.cab target:file:///C:/Documents and Settings/*/Local Settings/Temp/SDKSetup/Dbg/dbg_x86.cab size:15531576 reason:Failed to download the file https://download.microsoft.com/download/a/7/7/a7767f09-0136-4a96-a1f8-276bf0ee31fa\dbg_x86.cab, because the user cancelled the operation.

To work around this problem, I recommend you try our "Vista RTM Update" web setup (https://www.microsoft.com/downloads/details.aspx?familyid=4377f86d-c913-4b5c-b87e-ef72e5b4e065&displaylang=en), and if that fails switch over to the ISO setup at https://download.microsoft.com/download/4/2/6/42684501-9ec5-43dd-9dfe-c8c9dfa6a66f/6.1.6000.16384.10.WindowsSDK_Vista_Feb2007Update_rtm.DVD.Rel.iso

This seems to solve the problem for most people, but of course your mileage may vary. We have some revised code in the Windows Vista Update that addresses some of the download problems we previously had. Please don't hesitate to email me if it doesn't solve your problem.