I'm having issues while installing SCE on a clean Hyper-V virtual machine running Windows 2008 R2.

I've tried several options:
- all-in-one from scratch, no SQL or serverroles/features installed -> error 1603
- seperate SQL and SCE Management Server -> Management server installation fails, error 1603

Different variations including and excluding reporting and VM Management with the same results.

I then went and tried to install tbe Management server on a physical box -> success!

However, I can't use this box for SCE and need to virtualize the whole thing.

I'll dig through the SCE setup log files to see where it goes wrong.

In the mean time, any ideas/suggestions anyone?

/edit

Below  a snippet of the setup log. This is the part just before I get 'Return value 3':

MSI (s) (68:88) [15:42:11:574]: Invoking remote custom action. DLL: C:\Windows\Installer\MSIDD55.tmp, Entrypoint: AddPrivilegesToActionsAccount
AddPrivilegesToActionsAccount: Custom action data property value. *****\administrator
AddPrivilegeToAccount: Giving privilege to account. *****\administrator
AddPrivilegeToAccount: Account does not have privilege. SeServiceLogonRight
MSI (s) (68:14) [15:42:11:637]: Executing op: ActionStart(Name=_SetHealthServiceACL.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,,)
AddPrivilegeToAccount: Successfully granted privilege right to account. SeServiceLogonRight
MSI (s) (68:14) [15:42:11:639]: Executing op: CustomActionSchedule(Action=_SetHealthServiceACL.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,ActionType=3073,Source=BinaryData,Target=SetHealthServiceACL,)
MSI (s) (68:F8) [15:42:11:642]: Invoking remote custom action. DLL: C:\Windows\Installer\MSIDD95.tmp, Entrypoint: SetHealthServiceACL
MSI (s) (68:14) [15:42:11:734]: Executing op: ActionStart(Name=_ChangeMOMHealthServiceRecoverySettings.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,,)
MSI (s) (68:14) [15:42:11:736]: Executing op: CustomActionSchedule(Action=_ChangeMOMHealthServiceRecoverySettings.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,ActionType=3073,Source=BinaryData,Target=ChangeMOMHealthServiceRecoverySettings,)
MSI (s) (68:04) [15:42:11:739]: Invoking remote custom action. DLL: C:\Windows\Installer\MSIDDF3.tmp, Entrypoint: ChangeMOMHealthServiceRecoverySettings
MSI (s) (68:14) [15:42:11:755]: Executing op: ActionStart(Name=_RegisterMU.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,,)
MSI (s) (68:14) [15:42:11:756]: Executing op: CustomActionSchedule(Action=_RegisterMU.80B659D9_F758_4E7D_B4FA_E53FC737DCC9,ActionType=1025,Source=BinaryData,Target=RegisterMU,CustomActionData=C:\Program Files\System Center Essentials\MUAuth.cab 3)
MSI (s) (68:A0) [15:42:11:757]: Invoking remote custom action. DLL: C:\Windows\Installer\MSIDE04.tmp, Entrypoint: RegisterMU
RegisterMU: Custom action data property value. C:\Program Files\System Center Essentials\MUAuth.cab 3
RegisterMU: AddService failed. Error Code: 0x80070005.
CustomAction _RegisterMU.80B659D9_F758_4E7D_B4FA_E53FC737DCC9 returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)
MSI (s) (68:14) [15:42:12:017]: User policy value 'DisableRollback' is 0
MSI (s) (68:14) [15:42:12:017]: Machine policy value 'DisableRollback' is 0
Action ended 15:42:12: InstallFinalize. Return value 3.

From my recollection, you have to have some of the server roles installed and features added.  Go through the deployment guide, i believe they're listed in that document.

Hi Guys,

I am having the exact same issue. I have verified all prerequisites and can find absolutely nothing I am doing wrong with regards to what is prescribed in the guides. I am also trying to install SCE 2010 on a Hyper-V guest on Windows Server 2008 64Bit. I tried several times and troubleshooted my way through all the blogs. This is what I have done:

• Re-imaged the server (twice),
• Verified NetBios and FQDN is similar,
• Opened all required ports first and also disabled firewall eventualy,
• Using Domain Admin account,
• Removed ISS and reinstalled(SCE still complaing IIS needs configuration),
• Removed ISS again and let SCE setup fix prerequistes (SCE still complaining IIS needs configuration),

Also below please find my exact log... The sucess of my SCE 2010 installation is VERY KEY for us, but I believe for the product team as well. We are busy building an Enteorise Management Architecture in a hosted/multi-tennant environment and at this moment our POC is a showstopper :(.

operty(S): RuntimeUseWorkstationGC = 1
Property(S): ShouldManageMemory = true
Property(S): MOM_DB_IS_LOCAL = 1
Property(S): AGENTSERVERCOMPATIBLE = 1
Property(S): IsValidMgmtGroup = 1
Property(S): WINDOWS_LANGUAGE_ID = ENS
Property(S): DNS_COMPUTERNAME = PSGKSTSCE.psgkst.co.za
Property(S): AD_COMPUTERNAME = PSGKSTSCE.psgkst.co.za
Property(S): NETBIOS_DOMAINNAME = PSGKST
Property(S): ENABLE_ERROR_REPORTING = 0
Property(S): USE_SETTINGS_FROM_AD = 0
Property(S): SDK_ACCOUNT_FOR_DB = SYSTEM
Property(S): SDK_DOMAIN_FOR_DB = NT AUTHORITY
Property(S): ACTIONSDOMAIN_FOR_DB = PSGKST
Property(S): ACTIONSUSER_FOR_DB = Service-SCE
Property(S): ROOT_MANAGEMENT_SERVER_DNS = PSGKSTSCE.psgkst.co.za
Property(S): ROOT_MANAGEMENT_SERVER_AD = PSGKSTSCE.psgkst.co.za
Property(S): CONFIG_ACCOUNT_FOR_DB = SYSTEM
Property(S): CONFIG_DOMAIN_FOR_DB = NT AUTHORITY
Property(S): SOURCEDIR = D:\Setup\AMD64\Server\
Property(S): SourcedirProduct = {EA43D2A4-0926-445A-A220-6FF0CA34AA09}
Property(S): MANAGEMENT_GROUP_ID = ac80d722-cdb5-acaa-a3e3-c5b2e1ca4717
Property(S): ROOT_MANAGEMENT_SERVER_PORT_ID = C51B7833-DA54-1653-D8FD-1A738EF8DED5
Property(S): ProductToBeRegistered = 1
MSI (s) (24:C8) [10:55:13:979]: Note: 1: 1708
MSI (s) (24:C8) [10:55:13:980]: Product: System Center Essentials 2010 -- Installation operation failed.

MSI (s) (24:C8) [10:55:13:981]: Windows Installer installed the product. Product Name: System Center Essentials 2010. Product Version: 7.0.2432.0. Product Language: 1033. Manufacturer: Microsoft Corporation. Installation success or error status: 1603.

MSI (s) (24:C8) [10:55:13:987]: Deferring clean up of packages/files, if any exist
MSI (s) (24:C8) [10:55:13:987]: MainEngineThread is returning 1603
MSI (s) (24:2C) [10:55:13:988]: No System Restore sequence number for this installation.
=== Logging stopped: 2010/05/12  10:55:13 ===
MSI (s) (24:2C) [10:55:13:989]: User policy value 'DisableRollback' is 0
MSI (s) (24:2C) [10:55:13:989]: Machine policy value 'DisableRollback' is 0
MSI (s) (24:2C) [10:55:13:989]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (24:2C) [10:55:13:989]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (24:2C) [10:55:13:989]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (24:2C) [10:55:13:990]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (s) (24:2C) [10:55:13:990]: Restoring environment variables
MSI (s) (24:2C) [10:55:13:991]: Destroying RemoteAPI object.
MSI (s) (24:10) [10:55:13:991]: Custom Action Manager thread ending.
MSI (c) (98:48) [10:55:13:993]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (98:48) [10:55:13:994]: MainEngineThread is returning 1603
=== Verbose logging stopped: 2010/05/12  10:55:13 ===

I'll look through my notes when I get in and see if there's anything you're missing. you need to be 110% sure that the account you're using has admin rights on the server you're trying to install on, AND administrative rights on the database if you're using a remote db.   If you're doing both on the same box or vm there are roles and features that need to be enabled prior to install.

It is returning access denied while it is registering for Microsoft Update.  On the "Help improve System Center Essentials" page, uncheck the box "Use Microsoft Update to receive updates to this and other Microsoft products" and try to install again.

Bang on the money, after disabling the opt-in for Windows Update the installation went like a charm!

Thanks for that :-)

It is returning access denied while it is registering for Microsoft Update.  On the "Help improve System Center Essentials" page, uncheck the box "Use Microsoft Update to receive updates to this and other Microsoft products" and try to install

I got same error messagee on Hyper-V based VM Server 2008 R2 Standard 64bit. Solution with unchecking the update box doesn´t function. Every time same error.

My solution was using Server 2008 R2 Enterprise with unchecked update box. Now it works!

Thank you this worked for me also, disabled update option.
I also did this step, this may help others http://www.symantec.com/connect/articles/understanding-error-1603-fatal-error-during-installation

Good luck!

Thank you.  This solved my installation problem also.

1. It is surprising that a published option results in a fatal error
2. It would be A LOT more helpful for the installation screen to say more than a little red, "You failed"
3. The installation log generates 13,000 lines of text, half of which describes the roll-back after the ambiguous and ubiquitous 1603 error which you find around 7,000 lines in
4. Nothing in the log gives you a clue about how to resolve the problem

Disabling the "Check for Updates" option has worked for me as well. I find this very frustrating but I'm happy you guys were here otherwise I don't think I would have been able to figure this out. Thank you all for your time and contibutions.

I imaged a new server 2008 R2 Datacenter Version with all patches. But when i install SCE2010 i get only failed on Reporting everything else seems to work. My Error is 1603 in the logfile.I unchecked Microsoft Update but still this error. It takes a long time to install, then the error 1603.

Someone another solution?