For those of you who have arrived here after attempting to install from a mounted .iso image, try this:

- Uninstall any features that failed during installation or whose related service couldn't start

- Use WinRAR to extract the .iso to a local folder. WinZip doesn't always unpack .iso images reliably.

- Run the installer from the local folder instead of the .iso

I had the same problem trying to install SQL 2008 R2 on a Windows 7 Ultimate VM, and these steps worked for me. I use separate local accounts for each service.

Cheers,

Donny