By default Windows artificially limits your system to a maximum of eight filter drivers. If you already have eight and try to install a package with another, it won't work and will display the above message.
You could either uninstall some applications and their filter drivers, or a simple Registry edit might do the trick. Just open
regedit.exe and go to:
HKLM\SYSTEM\CurrentControlSet\Control\Network
Then double-click (or create) the DWORD value
MaxNumFilters, set it to something higher than the default value of eight (bearing in mind that 14 is the maximum), then reboot and you should be able to install the application correctly.
Regarding the network service, I am not sure why it stays, but you can try removing it manually and reboot before attempting to install again.