troubleshooting Question

Error 0x5 opening group policy Exchange 2007 install

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EGCFlag for United Kingdom of Great Britain and Northern Ireland asked on
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I am installing Exchange 2007 on a new server in an existing AD Domain with 1 2003 exchange server all the preparations have been fine and the readiness check has passed , though I did have to move from mixed mode to Native 2003 for both the exchange server and Active directory.
 
The install then fails with the following error

"Error 0x5  opening group policy on system dc1.xyz.com in domain xyz.com "


I have checked the rights the account being used for the exchange install is is a member of domain admins.

any help would be appreciated
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