I googled the issue and to my surprise there is extremely little information online about installing Oracle 11g on Windows 8. Not even a fix or a workaround, all I got was - Oracle doesn't support Windows 8 and vice versa. The workaround I ended up using is installing Oracle Virtualbox, installing Oracle Linux Server 6.4 on the Virtualbox machine and finally, installing Oracle 11g, the Linux version.
But if you have Windows XP or Windows 7, then I'll recommend you install that in the Virtualbox or better, dual boot it with your Windows 8. It took me 3 hectic days to get Oracle 11g configured on the Oracle Linux. Online help for fixing issues with Oracle on Linux is extremely confusing.
Anyway, I got it to work and created the Virtual Appliance image of the Virtual box machine to make a clone on other Windows 8 system, so I won't have to do the hectic job from scratch again.
If you are having similar issues with your Oracle installation, feel free to contact me.