MWUS Installation Failed (Error 0x00000643: Fatal error during installation)

[prash_mate]

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I have got some issues installing WSUS on a Windows 2003 server. After the WMSDE installs, it will then go to copying files and then fails saying that "There is a problem with this Windows Installer package". I am also getting event id 11722 with below descriptions:

Product: Microsoft Windows Server Update Services -- Error 1722. There is a
problem with this Windows Installer package. A program run as part of the
setup did not finish as expected. Contact your support personnel or package
vendor. Action PERF_COUNTER_INST, location: C:\Program Files\Update
Services\Setup\HideConsoleApp.exe, command:
C:\WINNT\Microsoft.NET\Framework\v1.1.4322\InstallUtil.exe
/LogFile="C:\Program Files\Update Services\LogFiles\WSUSCa_051003_1417.log"
/ShowCallStack /WsusInstall /CategoryMessageFile="C:\Program Files\Update
Services\Common\EventCategories.dll " "C:\Program Files\Update
Services\Setup\bin\Microsoft.UpdateServices.Setup.CustomActions.dll "

[Bon-Z]

I have found some information about this kind of issues with performance counters. So, when you check in the logfiles and event viewer then something like the below might be mentioned, as it was in my case:

The fix for this issue was: C:\WINDOWS\system32> lodctr /R to rebuild performance counter library. It helped on my Windows Server 2003 as well.