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Setup stops working during an upgrade from Exchange 2000 Server to Exchange Server 2003

This article has been archived. It is offered "as is" and will no longer be updated.
When you try to upgrade a computer that is running Microsoft Exchange 2000 Server Service Pack 3 to Microsoft Exchange Server 2003, Setup may appear to stop working. The Exchange Server Setup Progress.log file shows that the last function entered is CAtomSharedMachineSettings::ScSetACLsOnInstallDestDir.

The last lines in the Exchange Server Setup Progress.log will be similar to the following:
[23:45:51] Entering CAtomSharedMachineSettings::ScSetACLsOnInstallDestDir [23:45:51] Reading ACL from "E:\Exchsrvr" [23:45:51] We did not find explicit ACEs in this ACL, so we are modifying it [23:45:51] Looking for Program Files directory[23:45:51] Reading ACL from directory "C:\Program Files" [23:45:51] Tweaking bits on the ACL [23:45:51] Stamping ACL on "E:\Exchsrvr"
This problem may occur if you have a lot of files in the Badmail folder. During setup, the Access Control Lists are propagated from the Program Files folder to the Exchsrvr folder. There is one Badmail folder per SMTP virtual server. Setup performs file enumeration of every file in the Badmail folder and then stamps the access control list on every file in the Badmail folder. By default, the Badmail folder is located in the Exchsrvr\MailRoot\VSI x folder (where x is the SMTP virtual server instance number).
To work around this problem, stop Setup, move the files and the folders that are in the Badmail folder to another location, and then start Exchange Server 2003 Setup again. If the Badmail folder is too large to be moved out of the \Exchsrvr\MailRoot hierarchy, you may have to delete it.

Note Deleting the Badmail folder will cause the Badmail data to be permanently lost.

To delete the Badmail folder, follow these steps:
  1. Click Start, click Run, type cmd, and then click OK.
  2. At the command prompt, type the following command, and then press ENTER:
    rd /s /q badmail_folder
    In this command, badmail_folder is the full path of the Badmail folder.
Note Renaming the Badmail folder will not resolve the issue because Exchange Setup tries to set permissions on all \Exchsrvr subfolders.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

Article ID: 822578 - Last Review: 01/10/2015 14:08:12 - Revision: 3.4

Microsoft Exchange Server 2003 Enterprise Edition, Microsoft Exchange Server 2003 Standard Edition, Microsoft Windows Small Business Server 2003 Premium Edition, Microsoft Windows Small Business Server 2003 Standard Edition

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