This error has driven me crazy for weeks and has cost me about 12 hours in diagnostic effort.
When trying to install the OneDrive (formerly Skydrive) desktop client in a Windows 7 Enterprise 64bit machine I was getting a 0x80040ca0.
The following article offers advice that it is caused by a registry permissions issue and offers a process to fix the permissions issue but on its own it did not fix the problem.
After making the registry permission changes suggested in the article above it still wouldn’t work.
Running the install when logged in as local admin seemed to work ok but when I then re-logged on as a normal user I still had to rerun the install program for that user to get access to the client and again it failed.
I tried adding the normal user to the local admins group and even turning off UAC but to no avail.
At one point after attempting the OneDrive client install and it failing I wasn’t even able to open the OneDrive documents through the web interface. Thankfully a reboot seemed to fix this.
Finally after noticing that the OneDriveSetup.exe is a 32bit program and I was trying to install on a 64bit version of Windows 7 is looked at the compatibility settings of the OneDriveSetup.exe and set it to Windows XP SP3 compatibility mode and finally it worked.
I suspect that the complete solution is a combination of the registry permission settings and the .exe compatibility setting but this has cost me over 12 hours of diagnostic effort and I’m not going to spend any more time on it trying to find out the exact cause.
I’m stunned that Microsoft can build lots of other 32bit programs that work fine on a 64bit OS but not this one. They don’t even seem to have a 64bit version of OneDrive.
Hopefully this will help other people hitting the same problem.