Whats the exact error message that Migration Wizard is showing and which page shows this error? A screen shot would be helpful.
I guess the machine does not have MSXML 2.0 or above installed. The migration tool requires MSXML 2.0 or above installed on the machine.
Installing MSXML 2.0 or above should solves the issue. It can be installed explicitly or by installing the products containing MSXML 2.0 or above (like IE5.5 and above).
-Uday


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