WSUS 3.0SP1 on Server 2008 Install Hangs

I am trying to install WSUS 3.0 SP1 on a Windows Server 2008 64bit version but cant install it. The IIS7 and WSUS roles were installed but the IIS was giving me some kind of configuration errors and therefore I have to remove both the IIS and WSUS roles, after that I restarted and then added the IIS role only. I am also trying to re-add the WSUS role but the Server Manager hands at "Searching for Updates" for lifetime. Therefore I downloaded the WSUS 3.0 SP1 package manually and then tried to run the install. It will just hang with the message "Setup is preparing to install Windows Server Update Services 3.0 SP1". How do I solve this issue?

Did you check that whether or not you are using the 64bit installer for WSUS 3.0 Service Pack 1? I also think that WSUS will require the IIS6 compatibility feature installed. Did you check the release notes and deployment guide for all problems and suggestions related for the installation of WSUS? The problem seems to be with the 64 bit environment and Windows Server 2008, I think so.

Yeah, I have already tried to re-add it both from the Server Roles wizard and also by downloading the 64 bit package to no avail. Also, I have installed the II6 role service or features. I also did a go through but nothing seems obvious. I then tried to uninstall the Windows Internal Database if that was the problem but the standalone installer will hang in the "Preparing to install" message again and the Add Roles Wizard hangs at the "searching for updates" period. Any other ideas?

Follow the below steps to solve the issue that you are facing:

1. First of all run the WSUS 3.0 SP1 setup file again.
2. Then the wizard will ask to remove the database, the IIS page and the WSUS logs - I ticked off all three.
3. After that, make sure the "C:\WSUS" and "C:\Program Files\Update Services" folders are removed. If not, rename them (for example, "WSUS" to "WSUS_" and "Update Services" to "Update Services_").
4. Then you will have to install and run Windows Install Cleanup (msicuu2.exe) to make sure WSUS 3.0 SP1 is completely removed that can be downloaded from here - http://support.microsoft.com/kb/290301
5. Now try to rerun the "WSUSSetup_30SP1_x86.exe" file.
6. After that try to setup WSUS 3.0 SP1 to your liking and then run the Sync.
7. Incase it works, remove the "WSUS_" and the "Update Services_" folders.