ActiveX installation gives options Install and Install for All users for Non Admin user on Windows 7

Installing ActiveX is asking prompts to install and install for all users. This is happening as we are using CAB with inf file with InstallScope=user|machine. 

If we user InstallScope=user, the installation fails for Admin user with error 

*** Code Download Log entry (29 May 2013 @ 12:48:54) ***
Code Download Error: (hr = 80004001) Not implemented

Operation failed. Detailed Information:
     CodeBase: http://stavpun06.rtp.raleigh.ibm.com:9081/stwebav/STWebPlayerWin7.CAB
     CLSID: {84CADCFA-3BEB-4CF0-8974-241414B2227E}
     Extension: 
     Type: 

LOG: Reporting Code Download Completion: (hr:80004001 (FAILED), CLASSID: 84cadcfa..., szCODE:(http://stavpun06.rtp.raleigh.ibm.com:9081/stwebav/STWebPlayerWin7.CAB), MainType:(null), MainExt:(null))
--- Detailed Error Log Follows ---
LOG: Download OnStopBinding called (hrStatus = 0 / hrResponseHdr = 0).
LOG: URL Download Complete: hrStatus:0, hrOSB:80004001, hrResponseHdr:0, URL:(http://stavpun06.rtp.raleigh.ibm.com:9081/stwebav/STWebPlayerWin7.CAB)
LOG: Reporting Code Download Completion: (hr:80004001 (FAILED), CLASSID: 84cadcfa..., szCODE:(http://stavpun06.rtp.raleigh.ibm.com:9081/stwebav/STWebPlayerWin7.CAB), MainType:(null), MainExt:(null))

but it worked for Non Admin and gives only one prompt as Install. 

Please provide suggestion as it is blocking a lot. We need the activeX to give options Install for both users ( Admin and Non Admin ) only. 

I googled and found the above errors is something related with 

Please suggest if ActiveX needs to implement some interface or else.