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SQL Server 2k8 R2 Express install error: "Not all privileges or groups refen..."

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Hello,
Cannot for the life of me seem to get SQL Server 2008 R2 Express installed (32-bit Windows 7 Pro workstation). Keep getting this error or some derivative of it:

"SQL Not all privileges or groups referenced are assigned to the caller"

I have tried adding Domain Admin and local machine Admin to the Local Security Policy settings (Local Policies > User Rights Assignment):

- Debug Programs
- Restore files and directories
- Manage auditing and Security log (not editable) 
- Restore Files and Directories

I have also disabled UAC (set to lowest) and made the local admin owner of C:\Program Files and disabled permission inheritance. What else could be the issue? Thanks. 


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