service pack 3 upgrade fails, property setting error in log

I cannot upgrade SQL server 2005 SP2 to SP3 on Windows server 2008.
The install from both windows update and the manual download fail.
The log file seems to say there is a problem setting a property. In the manual installation, the status message says “setting internal properties” when it fails
I read somewhere that files created by a user in the instance folder could cause conflict, so I deleted a couple database backups I saved in the instance folder, but nothing. I’m now exhausted of this.
I’ve copied the log file here, but it was very large, so I’ve cut out what I thought wasn’t relevant. If you would like to see the rest of the log file because I cut out too much please just ask.
Thank you for your time.
 
MSI (s) (24:44) [23:19:36:852]: Invoking remote custom action. DLL: C:WindowsInstallerMSIB900.tmp, Entrypoint: CheckIIS
Action start 23:19:36: CheckIIS.D20239D7_E87C_40C9_9837_E70B8D4882C2.
MSI (s) (24!D0) [23:19:36:884]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:884]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:899]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:899]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:899]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:899]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:899]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:899]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:899]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Function=CheckIIS
MSI (s) (24!D0) [23:19:36:899]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:899]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:915]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:915]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:915]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:915]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:915]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!D0) [23:19:36:915]: Transforming table _sqlAction.
 
MSI (s) (24!D0) [23:19:36:915]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Doing Action: CheckIIS
PerfTime Start: CheckIIS : Tue Jan 05 23:19:36 2010
Info: CheckIIS is only for RS.  It has been skipped for non-RS package.
PerfTime Stop: CheckIIS : Tue Jan 05 23:19:36 2010
MSI (s) (24:28) [23:19:36:931]: Doing action: Create_RSGUID.D20239D7_E87C_40C9_9837_E70B8D4882C2
Action ended 23:19:36: CheckIIS.D20239D7_E87C_40C9_9837_E70B8D4882C2. Return value 1.
MSI (s) (24:28) [23:19:36:931]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:36:931]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:36:931]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:36:931]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:36:931]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:36:931]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:36:931]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:36:931]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:36:931]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:36:931]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:36:931]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:36:946]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:36:946]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:36:946]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:36:946]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:36:946]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:36:946]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:36:946]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:70) [23:19:36:977]: Invoking remote custom action. DLL: C:WindowsInstallerMSIB96E.tmp, Entrypoint: Create_RSGUID
Action start 23:19:36: Create_RSGUID.D20239D7_E87C_40C9_9837_E70B8D4882C2.
MSI (s) (24!B8) [23:19:37:274]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:274]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:290]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:290]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:290]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:290]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:290]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:290]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:290]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Function=Create_RSGUID
MSI (s) (24!B8) [23:19:37:290]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:290]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:306]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:306]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:306]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:306]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:306]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!B8) [23:19:37:306]: Transforming table _sqlAction.
 
MSI (s) (24!B8) [23:19:37:306]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Doing Action: Create_RSGUID
PerfTime Start: Create_RSGUID : Tue Jan 05 23:19:37 2010
MSI (s) (24!B8) [23:19:37:321]: PROPERTY CHANGE: Adding RSGUIDVALUE property. Its value is ‘{590e8c3d-ac82-4eb5-93ad-ff35241a98f4}’.
Starting Create_RSGUID
Created new GUID: {590e8c3d-ac82-4eb5-93ad-ff35241a98f4}
PerfTime Stop: Create_RSGUID : Tue Jan 05 23:19:37 2010
MSI (s) (24:28) [23:19:37:321]: Doing action: CheckPassedPropertiesLength.D20239D7_E87C_40C9_9837_E70B8D4882C2
Action ended 23:19:37: Create_RSGUID.D20239D7_E87C_40C9_9837_E70B8D4882C2. Return value 1.
MSI (s) (24:28) [23:19:37:321]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:321]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:321]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:337]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:337]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:337]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:337]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:04) [23:19:37:368]: Invoking remote custom action. DLL: C:WindowsInstallerMSIBAF5.tmp, Entrypoint: CheckPassedPropertiesLength
Action start 23:19:37: CheckPassedPropertiesLength.D20239D7_E87C_40C9_9837_E70B8D4882C2.
MSI (s) (24!74) [23:19:37:415]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:415]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:431]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:431]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:431]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:431]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:431]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:431]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:431]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Function=CheckPassedPropertiesLength
MSI (s) (24!74) [23:19:37:431]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:431]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:446]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:446]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:446]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:446]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:446]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!74) [23:19:37:446]: Transforming table _sqlAction.
 
MSI (s) (24!74) [23:19:37:446]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Doing Action: CheckPassedPropertiesLength
PerfTime Start: CheckPassedPropertiesLength : Tue Jan 05 23:19:37 2010
MSI (s) (24!74) [23:19:37:462]: PROPERTY CHANGE: Adding RSSqlPoolLimit property. Its value is ‘150’.
CheckPassedPropertiesLength:  Property USERNAME is of legal length.
PerfTime Stop: CheckPassedPropertiesLength : Tue Jan 05 23:19:37 2010
MSI (s) (24:28) [23:19:37:462]: Skipping action: AppendCLSSQLDATADIR (condition is false)
MSI (s) (24:28) [23:19:37:462]: Skipping action: SetAutoSAPWDAndDisable (condition is false)
MSI (s) (24:28) [23:19:37:462]: Doing action: FindRelatedProducts
Action ended 23:19:37: CheckPassedPropertiesLength.D20239D7_E87C_40C9_9837_E70B8D4882C2. Return value 1.
MSI (s) (24:28) [23:19:37:462]: Skipping FindRelatedProducts action: not run in maintenance mode
Action start 23:19:37: FindRelatedProducts.
MSI (s) (24:28) [23:19:37:462]: Doing action: FindUpgradeableProduct
Action ended 23:19:37: FindRelatedProducts. Return value 0.
MSI (s) (24:28) [23:19:37:462]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:462]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:477]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:477]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:477]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:477]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:477]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:477]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:477]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:477]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:477]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:493]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:493]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:493]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:493]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:493]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:493]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:493]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:F4) [23:19:37:509]: Invoking remote custom action. DLL: C:WindowsInstallerMSIBB92.tmp, Entrypoint: FindUpgradeableProduct
Action start 23:19:37: FindUpgradeableProduct.
MSI (s) (24!DC) [23:19:37:696]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:696]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:712]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:712]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:712]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:712]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:712]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:712]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:712]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Function=FindUpgradeableProduct
MSI (s) (24!DC) [23:19:37:712]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:712]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:727]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:727]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:727]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:727]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:727]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!DC) [23:19:37:727]: Transforming table _sqlAction.
 
MSI (s) (24!DC) [23:19:37:727]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Doing Action: FindUpgradeableProduct
PerfTime Start: FindUpgradeableProduct : Tue Jan 05 23:19:37 2010
PerfTime Stop: FindUpgradeableProduct : Tue Jan 05 23:19:37 2010
MSI (s) (24:28) [23:19:37:743]: Doing action: SetInstanceProperty.D20239D7_E87C_40C9_9837_E70B8D4882C2
Action ended 23:19:37: FindUpgradeableProduct. Return value 1.
MSI (s) (24:28) [23:19:37:743]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:743]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:743]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:743]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:743]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:743]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:743]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:743]: Transforming table CustomAction.
 
MSI (s) (24:28) [23:19:37:743]: Note: 1: 2262 2: CustomAction 3: -2147287038 
MSI (s) (24:28) [23:19:37:743]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:743]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:759]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:759]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:759]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:759]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:759]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:28) [23:19:37:759]: Transforming table Binary.
 
MSI (s) (24:28) [23:19:37:759]: Note: 1: 2262 2: Binary 3: -2147287038 
MSI (s) (24:68) [23:19:37:774]: Invoking remote custom action. DLL: C:WindowsInstallerMSIBC9C.tmp, Entrypoint: SetInstanceProperty
Action start 23:19:37: SetInstanceProperty.D20239D7_E87C_40C9_9837_E70B8D4882C2.
MSI (s) (24!80) [23:19:37:806]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:806]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:821]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:821]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:821]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:821]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:821]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:821]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:821]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Function=SetInstanceProperty
MSI (s) (24!80) [23:19:37:821]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:821]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:837]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:837]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:837]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:837]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:837]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
MSI (s) (24!80) [23:19:37:837]: Transforming table _sqlAction.
 
MSI (s) (24!80) [23:19:37:837]: Note: 1: 2262 2: _sqlAction 3: -2147287038 
Doing Action: SetInstanceProperty
PerfTime Start: SetInstanceProperty : Tue Jan 05 23:19:37 2010
MSI (s) (24!80) [23:19:37:837]: PROPERTY CHANGE: Adding SqlOriginalMachineName property. Its value is ‘COMPUTER’.
MSI (s) (24!80) [23:19:37:837]: PROPERTY CHANGE: Adding SqlLegacyRegPath property. Its value is ‘MSSQLServer’.
MSI (s) (24!80) [23:19:37:852]: PROPERTY CHANGE: Adding PreviousInstId property. Its value is ‘MSSQL.1’.
Using instanced id: MSSQL.1
MSI (s) (24!80) [23:19:37:852]: PROPERTY CHANGE: Adding InstId property. Its value is ‘MSSQL.1’.
Previous instance id: MSSQL.1
Using instance name: MSSQLSERVER
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding PrevRegRootPath property. Its value is ‘SoftwareMicrosoftMicrosoft SQL ServerMSSQL.1’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding InstanceName.D20239D7_E87C_40C9_9837_E70B8D4882C2 property. Its value is ‘MSSQLSERVER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServicePrefixRS.6080319C_1466_426E_9E7A_1DD555143E0A property. Its value is ‘SQLServer2005ReportServerUser$COMPUTER$’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServicePrefixSSIS.6080319C_1466_426E_9E7A_1DD555143E0A property. Its value is ‘SQLServer2005DTSUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServiceGroupSQLBrowser.2FC2D269_8625_4826_BB3F_F9059090CB38 property. Its value is ‘SQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding QuotedServiceGroupSQLBrowser.2FC2D269_8625_4826_BB3F_F9059090CB38 property. Its value is ‘DOMAINSQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServiceGroupSQLBrowser.03BE59F9_3DFA_413B_A99C_B95CA31A7BFE property. Its value is ‘SQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding QuotedServiceGroupSQLBrowser.03BE59F9_3DFA_413B_A99C_B95CA31A7BFE property. Its value is ‘DOMAINSQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServiceGroupSQLBrowser.879C8BDB_884A_4C3C_80C3_3452EA2B8439 property. Its value is ‘SQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding QuotedServiceGroupSQLBrowser.879C8BDB_884A_4C3C_80C3_3452EA2B8439 property. Its value is ‘DOMAINSQLServer2005SQLBrowserUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServiceGroupADHelper.2C8E638F_C982_4AA5_A173_7148A8E8649D property. Its value is ‘SQLServer2005MSSQLServerADHelperUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding QuotedServiceGroupADHelper.2C8E638F_C982_4AA5_A173_7148A8E8649D property. Its value is ‘DOMAINSQLServer2005MSSQLServerADHelperUser$COMPUTER’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding InstanceRegKey.2C8E638F_C982_4AA5_A173_7148A8E8649D property. Its value is ‘Microsoft SQL ServerMSSQL.1’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding DataInstanceTxt.EAD22282_F1AF_4119_B1F9_C9F1DCBC62FF property. Its value is ‘C:Program Files (x86)Microsoft SQL ServerMSSQL.1MSSQL’.
MSI (s) (24!80) [23:19:37:868]: PROPERTY CHANGE: Adding ServiceNameSQL.EAD22282_F1AF_4119_B1F9_C9F1DCBC62FF property. Its value is ‘MSSQLSERVER’.
Using PrevRegRootPath: SoftwareMicrosoftMicrosoft SQL ServerMSSQL.1
GetServiceUserGroup failed for MSSQLSERVER, 5
        Error Code: 0x80070534 (1332)
Windows Error Text: No mapping between account names and security IDs was done.
  Source File Name: sqlcasqlcax.cpp
Compiler Timestamp: Fri Nov 21 18:42:10 2008
     Function Name: SetInstanceProperty
Source Line Number: 1224
 
 
 
MSI (s) (24!80) [23:19:37:884]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:884]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:899]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:899]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:899]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:899]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:899]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:899]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:899]: Note: 1: 2262 2: Error 3: -2147287038 
Error Code: 1332
MSI (s) (24!80) [23:19:37:946]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:946]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:946]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:946]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:946]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:946]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:946]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:946]: Transforming table Error.
 
MSI (s) (24!80) [23:19:37:946]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24!80) [23:19:37:946]: Product: Microsoft SQL Server 2005 — Error 29528. The setup has encountered an unexpected error while Setting Internal Properties. The error is: Fatal error during installation.
 
 
Error 29528. The setup has encountered an unexpected error while Setting Internal Properties. The error is: Fatal error during installation.
 
MSI (s) (24:28) [23:19:38:165]: Product: Microsoft SQL Server 2005 – Update ‘Service Pack 3 for SQL Server Database Services 2005 ENU (KB955706)’ could not be installed. Error code 1603. Additional information is available in the log file C:Program Files (x86)Microsoft SQL Server90Setup BootstrapLOGHotfixSQL9_Hotfix_KB955706_sqlrun_sql.msp.log.
 
MSI (s) (24:28) [23:19:38:165]: Windows Installer installed an update. Product Name: Microsoft SQL Server 2005. Product Version: 9.3.4035.00. Product Language: 1033. Update Name: Service Pack 3 for SQL Server Database Services 2005 ENU (KB955706). Installation success or error status: 1603.
 
MSI (s) (24:28) [23:19:38:165]: Note: 1: 1729 
MSI (s) (24:28) [23:19:38:165]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:165]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:165]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:165]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:165]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:165]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:165]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:165]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:165]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:181]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:181]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:181]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:181]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:181]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:181]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:181]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:181]: Transforming table Error.
 
MSI (s) (24:28) [23:19:38:181]: Note: 1: 2262 2: Error 3: -2147287038 
MSI (s) (24:28) [23:19:38:181]: Product: Microsoft SQL Server 2005 — Configuration failed.
 
MSI (s) (24:28) [23:19:38:181]: Windows Installer reconfigured the product. Product Name: Microsoft SQL Server 2005. Product Version: 9.3.4035.00. Product Language: 1033. Reconfiguration success or error status: 1603.
 
MSI (s) (24:28) [23:19:38:181]: Attempting to delete file C:WindowsInstaller208415b0.msp
MSI (s) (24:28) [23:19:38:181]: Unable to delete the file. LastError = 32
MSI (s) (24:28) [23:19:38:290]: Cleaning up uninstalled install packages, if any exist
MSI (s) (24:28) [23:19:38:290]: Attempting to delete file C:WindowsInstaller208415b0.msp
MSI (s) (24:28) [23:19:38:290]: MainEngineThread is returning 1603
MSI (s) (24:E0) [23:19:38:290]: Destroying RemoteAPI object.
MSI (s) (24:50) [23:19:38:290]: Custom Action Manager thread ending.
MSI (s) (24:E0) [23:19:38:290]: RESTART MANAGER: Session closed.
MSI (s) (24:E0) [23:19:38:290]: No System Restore sequence number for this installation.
=== Logging stopped: 05/01/2010  23:19:38 ===
MSI (c) (88:DC) [23:19:38:290]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (88:DC) [23:19:38:290]: MainEngineThread is returning 1603
=== Verbose logging stopped: 05/01/2010  23:19:38 ===

Did you execute the install file with Run as Administrator option ?/

Hi,Please go to %ProgramFiles%Microsoft SQL Server90Setup BootstrapLogHotfix, post the setup Summary.txt file here. It may indicate some relevant verbose log  files in the Summary.txt, you can post here or zip them and upload to Sky Drive (http://skydrive.live.com, or any other sites), don’t forget share the link here. For your reference: How to view SQL Server 2005 Setup log files: http://msdn.microsoft.com/en-us/library/ms143702(SQL.90).aspx. 

I just reinstalled Windows and reconfigured it all over again. It was too big a mess to deal with.