SP1 setup fails. Access is denied

When I try to install SP1 on my Windows 1003 server it goes all the way thru
the file copying and gets to the end and pops a message box titles Service
Pace 1 Setup Error

The message says Access is denied. Any iteas? It then has be click ok and it
rolls back the install and the server reboots. Fotunately it's ok. I have
tried stopping all the apps running that I can find and then running the
install but I get the same result. I am including my service pack log file
with all but the end of it left.
If you look at the end that is were it fails and rolls back.

1.525: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\uddisp.exe
6081.625: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\ie.inf
6081.635: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\irbus.inf
6081.645: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\uddiadm.msp
6081.725: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\sceregvl.inf
6081.745: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\netias.inf
6081.755: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\accessor.inf
6081.775: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\oobe.inf
6081.785: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\sysoc.inf
6081.805: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\netnwlnk.inf
6081.815: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\pchealth.inf
6081.825: Copied file:
c:\winnt\ServicePackFiles\ServicePackCache\i386\netdns.inf

Select 'OK' to undo the changes that have been made.
6260.482: Message displayed to the user: Service Pack 1 installation did not
complete.

Select 'OK' to undo the changes that have been made.
6260.482: User Input: OK
6260.582: Starting process:
C:\WINNT\$NtServicePackUninstall$\spuninst\spuninst.exe /~ -u -z
7952.335: Software Update Rollback has completed with return code 0xbc2.
This rollback requires a reboot.
7952.345: Service Pack 1 installation did not complete.

Windows Server 2003 has been partially updated and may not work properly.
8098.195: Message displayed to the user: Service Pack 1 installation did not
complete.

Windows Server 2003 has been partially updated and may not work properly.
8098.195: User Input: OK
8098.195: Update.exe extended error code = 0x5
8098.195: Update.exe return code was masked to 0x643 for MSI custom action
compliance.
Shutdown Initiated in Self Extractor

Forgive me for pointing out the obvious but you are
using an account that has local "administrative" privileges?

I am using the "administrator" account.

Okay but if the server is a member server and the
domain is chosen in the domain field, that account
doesn't have local administrative privileges.

This server is the domain server. The only server on the network.

Finally found the problem. The administrators group did not have fill
control in the hkey_classes_root branch of the registry.

I am having what seems to be exactly the same error as the original
post.
Brand new installation of Windows Server 2003 onto a single partition,
full format over the top of whatever was there before. Accepted
default options throughout the install process, server is installed
into a workgroup by itself, have not installed any additional software
or performed any configuration beyond setting the local language to
English (New Zealand). Immediately after install, I go to Windows
Update and download SP1. Installation fails with access denied. The
service pack install log shows the access violation at exactly the same
point (DoInstallation:DoRegistryUpdat*es failed) as in David's
original post.

I've checked registry permissions on HKEY_classes_root and they look
fine. Administrators has full control, and the administrator account
is a member of this group. Just to see, I made Everyone a member of
Administrators and reran the servioe pack install. It failed at
exactly the same point.

Any ideas? I can't really use this machine if I can't patch it. I've
noticed that this server also displays the "This server is a member of
a cluster" wierdness when the "Manage your server" wizard starts. I
repeat that I haven't done any configuration - so this is not a member
of a cluster and I haven't changed any permissions. For what it's
worth, I've used this media for a server setup before without any
problems.

I hope you all still keep an eye on this post. I have some new
findings on this problem.

We found a similar problem after upgrade from Windows 2000 SP4 to Windows
2003 and we finally fix the problem by setting the permission in registry. We
then successfully apply SP1 and everything works fine.

Later, we setup a new application and add a new ODBC entry. We found that
the ODBC entry is not working. Guess what, the registry permission for the
new ODBC entry is wrong!!! Even the administrator do not have access to the
registry!! After granting the permission, the ODBC entry work again.

From my point of view, this is a pretty critical problem and we defer all
our plans for Windows 2003 upgrade. The permission problem is sometimes not
so obvious. For example, in the ODBC case, no error is problem for permission
problem. We will open a support case in Microsoft soon.

not sure where to find admin group in the root branch, I looked in all the
classs entries and didnt find a fill control

[rhaddadin]

I am having same problem...Sorry ..I was wondering where exactly is hkey_classes_root branch of the registry to give full control to administrator...? I a mnot well versed in reigistry editing unless I am given exact path...