I'm still baffled at all these errors people get trying to run UnrealEd.
I recently installed a copy of UT on my little bro's PC so that he could use mine and I could keep editing (yep I've got no life /~unreal/ubb/html/wink.gif ) and all I did was install the game, run the 2nd CD's setup. Then run the UnrealEdInstaller on the harddrive and tell it to install to C:\UnrealTournament and it ran fine. Nothing else was installed (no VbRun60.exe, RichText fix, etc). It even ran fine after I installed the 405 patch.
Only thing I can think of that might hinder the install is the Windows/System folder is write protected, the Registry is being blocked out by certain apps, possibly running WinNT (reason for the write protections?), or UnrealEd was installed into the wrong place.