Reinstall WSUS - Missing Instance SERVER\MICROSOFT##SSEE

I need help to get rid of problem that I am facing on WSUS. I am pasting the entire log here and hope that someone can guide me to deal with the issue. I had also created the same kind of post on other windows server forums so that I can get maximum help for there. But somehow I am not able to work on it. I think there will be some set of possible ways that will work.

Code:

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2007-12-28 14:39:25  Success  MWUSSetup          Validating pre-requisites...
2007-12-28 14:39:37  Success  MWUSSetup          Removing Wsus...
2007-12-28 14:39:38  Success  CustomActions.Dll  The system language ENG is
not supported. Using English resources...
2007-12-28 14:39:38  Success  CustomActions.Dll  Successfully set propery
of WSUS admin groups' full names
2007-12-28 14:39:55  Error    CustomActions.Dll  CSqlConnection::Open:
Failed to open SQL connection to instance SERVER\MICROSOFT##SSEE (Error
0x80004005: Unspecified error)
2007-12-28 14:39:55  Error    CustomActions.Dll  GetDatabaseLocation:
Failed to open connection to SQL instance %computername%\MICROSOFT##SSEE
(Error 0x80004005: Unspecified error)
2007-12-28 14:39:55  Error    CustomActions.Dll
SetWyukonInstallDirProperty: Failed to get installed location of SUSDB in
WYukon (Error 0x80004005: Unspecified error)
2007-12-28 14:39:55  Error    CustomActions.Dll  SetUnInstallProperties:
Failed to set WYUKON install directory (Error 0x80004005: Unspecified error)
2007-12-28 14:39:55  Error    MWUSSetup          RemoveWsus: MWUS Uninstall
Failed (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:39:55  Error    MWUSSetup          Wsus MSI uninstallation
failed. (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:39:55  Error    MWUSSetup          CSetupDriver::LaunchSetup:
Setup failed (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:40:10  Error    MWUSSetup          DoInstall: Wsus setup
failed (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:41:56  Success  MWUSSetup          Validating pre-requisites...
2007-12-28 14:42:02  Success  MWUSSetup          Removing Wsus...
2007-12-28 14:42:02  Success  CustomActions.Dll  The system language ENG is
not supported. Using English resources...
2007-12-28 14:42:02  Success  CustomActions.Dll  Successfully set propery
of WSUS admin groups' full names
2007-12-28 14:42:17  Error    CustomActions.Dll  CSqlConnection::Open:
Failed to open SQL connection to instance SERVER\MICROSOFT##SSEE (Error
0x80004005: Unspecified error)
2007-12-28 14:42:17  Error    CustomActions.Dll  GetDatabaseLocation:
Failed to open connection to SQL instance %computername%\MICROSOFT##SSEE
(Error 0x80004005: Unspecified error)
2007-12-28 14:42:17  Error    CustomActions.Dll
SetWyukonInstallDirProperty: Failed to get installed location of SUSDB in
WYukon (Error 0x80004005: Unspecified error)
2007-12-28 14:42:17  Error    CustomActions.Dll  SetUnInstallProperties:
Failed to set WYUKON install directory (Error 0x80004005: Unspecified error)
2007-12-28 14:42:17  Error    MWUSSetup          RemoveWsus: MWUS Uninstall
Failed (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:42:17  Error    MWUSSetup          Wsus MSI uninstallation
failed. (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:42:17  Error    MWUSSetup          CSetupDriver::LaunchSetup:
Setup failed (Error 0x80070643: Fatal error during installation.)
2007-12-28 14:42:19  Error    MWUSSetup          DoInstall: Wsus setup
failed (Error 0x80070643: Fatal error during installation.)

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Try to reinstall everything. There is no way to find a appropriate option for the error that you are facing. You must simply install all the updates once again and I am sure you will find a solution on it. WSUS once does not work properly there are number problem that keeps on appearing. I also found a Microsoft link that can help you on the problem.

How to troubleshoot common errors that occur when you run the SharePoint Products and Technologies Configuration Wizard on a computer that is running Windows SharePoint Services 3.0 or SharePoint Server 2007

I joined just to bump this up. After all weekend this registry value allowed me to reinstall WSUS. Perhaps some details of my situation for the search engines:
A McAfee EPO uninstall left em with a BSOD on startup complaining of the winlogon service crashing. I decided to run a repair installation of the operating system, and after I had installed all or the available updates, I was still unable to get WSUS working, or even removed to reinstall. Changing this reg vaulue allowed me to uninstall without error, and re install.
Thanks a million.