Error message when you try to install a SQL Server 2005 service pack or a SQL Server 2005 hotfix package: "Error 29528. The setup has encountered an unexpected error while Setting Internal Properties"

When you try to install Microsoft SQL Server 2005 Service Pack 1 (SP1), later SQL Server 2005 service packs, or a SQL Server 2005 hotfix package, SQL Server 2005 Database Services or SQL Server 2005 Analysis Services may not be installed successfully. Additionally, the following error message may be logged in the Setup log file:

This issue occurs because of one of the following reasons:

• An operation has removed the local groups for the initial installation of SQL Server 2005.
• An operation has changed the security identifiers (SID) for the local groups.

Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:

For a stand-alone installation of SQL Server 2005

1. Locate the following registry subkeys that store SID values for the SQL Server instance experiencing the problem. Each key contains a value which should be the SID for the local groups configured when the SQL Server instance was initially installed.
   • 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:
   HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server\Instance Names\SQL\
   For any local groups that have been removed, you should delete the registry subkey. For any local groups for which the SID has been changed you should change the value of the registry subkey to the value of the new SID. You can obtain the SID values by using the PsGetSid command prompt utility. The names of the local groups resemble the following:
   SQLServer2005MSFTEUser$ComputerName$InstanceName
   You can obtain the name from the Local Users and Groups node in the Computer Management console.
   
   For more information about how to obtain the PsGetSid command prompt utility, visit the following Microsoft Web site:
   http://technet.microsoft.com/en-us/sysinternals/bb897417.aspx (http://technet.microsoft.com/en-us/sysinternals/bb897417.aspx)
2. Reinstall the SQL Server 2005 service pack or the SQL Server 2005 hotfix package.

For a clustered instance of SQL Server 2005

1. Follow step 1 in the procedure for a stand-alone installation of SQL Server 2005.
2. Reinstall the clustered instance of SQL Server 2005.
3. Reinstall the SQL Server 2005 service pack or the SQL Server 2005 hotfix package.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

The initial installation of SQL Server 2005 creates local groups and stores the SID settings for the local groups in the registry. However, the local groups or the SIDs may be removed or changed when you perform the following operations:

• Install the Active Directory directory service on a member server.
• Remove Active Directory from a domain controller.