You probably did not uninstall a previous installation of ezp 3.x. Your attempt my also make things dirty. So uninstal all of ez en reinstall a fresh copy of ezp3.2
I have the same problem. I used the WinXP installer. Prior to running the installer I deinstalled the previous version (3.2 beta 2) & rebooted, then ran the 3.2 installer. No problems during install. OS: WinXP pro 2002 SP1.
Try a second uninstall, I think some config of mysql is still hanging around and disturbing the setup. If the uninstall is asking about removing any my.ini, say yes.
Before running the setup again (after a new install), make sure mysqld and httpd are running (see the xp services and/or processes).
Ok, I tried a second unistall and it did ask me if I wanted to remove those files, I answered Yes. Reboot. Install, finished OK. Ran setup, finsihed OK.