MWUS Installation Failed (Error 0x00000643: Fatal error during ins

I am having problems installing WSUS on a Windows 2003 Server. After WMSDE
installs, it then goes to copying files, then fails saying "There is a
problem with this Windows Installer package", etc.

I get an event Id 11722 with description:
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 "

In the WSUSSetupmsi log file I see the following:
MSI (s) (EC:9C) [14:47:08:923]: Executing op:
CustomActionSchedule(Action=PERF_COUNTER_INST,ActionType=3090,Source=C:\Program
Files\Update
Services\Setup\HideConsoleApp.exe,Target=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 ",)
MSI (s) (EC:9C) [14:47:43:220]: Note: 1: 1722 2: PERF_COUNTER_INST 3:
C:\Program Files\Update Services\Setup\HideConsoleApp.exe 4:
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 "
MSI (s) (EC:9C) [14:48:24:578]: 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 "

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 "
MSI (s) (EC:9C) [14:48:24:609]: User policy value 'DisableRollback' is 0
MSI (s) (EC:9C) [14:48:24:609]: Machine policy value 'DisableRollback' is 0
Action ended 14:48:24: InstallFinalize. Return value 3.

From the WUSSetup log file I see the following:

2005-10-03 14:17:07 Success MWUSSetup WSUS Server Setup Started.
2005-10-03 14:17:07 Success MWUSSetup Parsing command line
arguments
2005-10-03 14:17:07 Success MWUSSetup WSUS Setup: Performing
Install
2005-10-03 14:17:08 Success MWUSSetup Validating pre-requisites
2005-10-03 14:17:08 Success MWUSSetup .Net framework SP1 is
detected on this machine
2005-10-03 14:17:08 Success MWUSSetup Creating WSUS registry key
2005-10-03 14:17:08 Success MWUSSetup Initializing installation
details
2005-10-03 14:17:08 Success MWUSSetup Initializing wizard
2005-10-03 14:18:01 Success MWUSSetup Installing ASP.Net
2005-10-03 14:18:24 Success MWUSSetup Asp.Net is installed
successfully
2005-10-03 14:18:24 Success MWUSSetup ASP.Net is installed
successfully
2005-10-03 14:18:39 Success MWUSSetup MSXML2 is already
installed on this machine
2005-10-03 14:18:39 Success MWUSSetup Installing WMSDE
2005-10-03 14:45:41 Success MWUSSetup WMSDE Installed Successfully
2005-10-03 14:45:42 Success MWUSSetup WMSDE is installed
successfully
2005-10-03 14:45:42 Success MWUSSetup Initializing MWUS
installation
2005-10-03 14:45:42 Success MWUSSetup Installing PSFSIP
2005-10-03 14:45:42 Success MWUSSetup PSFSIP Installed
Successfully
2005-10-03 14:45:42 Success MWUSSetup Copying installation
settings to the registry
2005-10-03 14:45:42 Success MWUSSetup Installing MSUS...
2005-10-03 14:45:42 Success MWUSSetup Installing MWUS With
Command Line SETUP_EXE=1 WUS_INSTALLMODE="128" AUTHENTICATED_USERS="NT
AUTHORITY\Authenticated Users" CONTENT_LOCAL="1"
SQLINSTANCE_NAME="%computername%\WSUS" CUSTOMACTION_LOG="C:\Program
Files\Update Services\LogFiles\WSUSCa_051003_1417.log" REPLICA_PARENT
2005-10-03 14:45:59 Success CustomActions.Dll .Net framework path:
C:\WINNT\Microsoft.NET\Framework\v1.1.4322
2005-10-03 14:46:04 Success CustomActions.Dll Creating WSUS
Administrators user group
2005-10-03 14:46:04 Success CustomActions.Dll WSUS Administrators user
group already exists
2005-10-03 14:46:04 Success CustomActions.Dll Successfully created WSUS
Administrators user group
2005-10-03 14:49:05 Error MWUSSetup MWUS Installation Failed
(Error 0x00000643: Fatal error during installation.)
2005-10-03 14:49:05 Error MWUSSetup InstallMSUS failed (Error
0x80070643: Fatal error during installation.)
2005-10-03 14:49:05 Error MWUSSetup MWUS installation failed
(Error 0x80070643: Fatal error during installation.)
2005-10-03 14:49:05 Error MWUSSetup PerformInstall failed
(Error 0x80070643: Fatal error during installation.)
2005-10-03 14:49:05 Success MWUSSetup Rolling back Installation
2005-10-03 14:49:05 Success MWUSSetup WSUS Server installation
failed. You can look at C:\Program Files\Update
Services\LogFiles\WSUSCa_051003_1417.log file to determine the cause of the
failure
2005-10-03 14:50:01 Success MWUSSetup WMSDE Uninstall Succeeded
2005-10-03 14:50:01 Error MWUSSetup Failed to copy
Setup\UninstallHelper.exe to
C:\DOCUME~1\MCDONA~1\LOCALS~1\Temp\UninstallHelper.exe (Error 0x80070003: The
system cannot find the path specified.)
2005-10-03 14:50:01 Success MWUSSetup Insert string: %1 For more
information, see the Setup logs "%2" and "%3" .
2005-10-03 14:50:01 Success MWUSSetup szErrorType: Microsoft
Windows Server Update Services could not install WSUSService and the
performance counters.
2005-10-03 14:50:01 Success MWUSSetup ErrorLog: C:\Program
Files\Update Services\LogFiles\WSUSCa_051003_1417.log
2005-10-03 14:50:01 Success MWUSSetup StringObtained: Microsoft
Windows Server Update Services could not install WSUSService and the
performance counters. For more information, see the Setup logs "C:\Program
Files\Update Services\LogFiles\WSUSCa_051003_1417.log" and "C:\Program
Files\Update Services\LogFiles\WSUSSet
2005-10-03 14:51:23 Error MWUSSetup WSUS Setup: Performing
Install Failed. (Error 0x80070643: Fatal error during installation.)
2005-10-03 14:51:23 Error MWUSSetup WSUS Setup Failed. (Error
0x80070643: Fatal error during installation.)

I'm not sure how to handle this one. Does anyone have any suggestions?

Thanks,

Justin