Today I had this problem for the second time. Last time it cost me 3 hours to find the solution. Now I find your article and I fixed it in 30 minutes 🙂
My Exact error was (summary.txt):
MSP Error: 29528 The setup has encountered an unexpected error while Setting Internal Properties. The error is: Fatal error during installation.
The workaround resolution involves the following steps:
For a stand-alone installation of SQL Server 2005
Remove the following registry subkeys that store SID settings:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.X\Setup\SQLGroup
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.X\Setup\AGTGroup
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.X\Setup\FTSGroup
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.X\Setup\ASGroup
Note In these registry subkeys, MSSQL.X is a placeholder for the corresponding value on a specific system. You can determine MSSQL.X on a specific system by examining the value of the MSSQLSERVER registry entry under the following registry subkey:
Reinstall the SQL Server 2005 service pack or the SQL Server 2005 hotfix package.
For some reason, the local SIDs had been changed or removed or something and SQL just needed to figure out what was going on.
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\Instance Names\SQL\