If you have an Enterprise Agreement or Volume License from Microsoft you may wish to bookmark this one. When downloading SQL 2005 Standard or Express you have 2 iso’s to download. One has a #1 in the name and the other #2 in the name. Grab them both. The first is the servers install and the second is the tools. If you happen to only get the first, you will soon learn you cannot install the management consoles and other client connectivity options. Oh sure the setup will allow you to select them. You’ll even get the installation to kick off and run a bit. But rest assured by the time you get back from lunch your install will have failed. You’ll see a message like:

There was an unexpected failure during the setup wizard. You may review the setup logs and/or click the help button for more information.

You can go and double check your logs to make sure it is the same issue. Check the logs here:

C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Files

If it turns out to be the same issue you should see something like the following:

Running: InstallToolsAction.10 at: 2006/4/8 16:46:2
Error: Action "InstallToolsAction.10" threw an exception during execution. Error information reported during run:
Target collection includes the local machine.
Fatal Exception caught while installing package: "10"
Error Code: 0x80070002 (2)
Windows Error Text: The system cannot find the file specified. Source File Name: sqlchaining\sqlprereqpackagemutator.cpp
Compiler Timestamp: Tue Aug 9 01:14:20 2005
Function Name: sqls::SqlPreReqPackageMutator::modifyRequest
Source Line Number: 196
---- Context -----------------------------------------------
sqls::InstallPackageAction::perform
WinException caught while installing package. : 1603
Error Code: 0x80070643 (1603)
Windows Error Text: Fatal error during installation. Source File Name: packageengine\installpackageaction.cpp
Compiler Timestamp: Fri Jul 1 01:28:25 2005
Function Name: sqls::InstallPackageAction::perform
Source Line Number: 167
---- Context -----------------------------------------------
sqls::InstallPackageAction::perform


If everything checks out this far then here is how to fix it. You need #1 and #2 iso’s. Extract #1 to *:\sql2005\servers. Then extract #2 to *:\sql2005\tools. Now rerun your setup from the servers directory. Now when you select to install servers and client components etc it will successfully install.

Source I used to fix my problem the first time.

http://support.microsoft.com/kb/916760/en-us

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