MsiExec.exe - Application Error when installing SQL 2005

I have a server with MSDE running on it because of Backup Exec.  Now I am trying to install the full blown version of SQL 2005 on this server because another piece of software that we use requires that we have the full blown SQL so that I can select an instance with just the server name.  Everytime I try to install SQL on this server, I get the error messages attached.  I know almost nothing about SQL other than it's a database system needed for some programs to work and I am not sure what options I should pic when installing it.  
This is what I am doing at the different steps of the installation:
The first page asks what components you want to install. The only thing I am selecting is "SQL Server Database Services." there are 5 other options to install other things, but I didn't think they were necessary.
Then it gets to a page that asks me if I want to do Default Instance or Named Instance.   So I pick Named Instance and I make up a name like "DA7" because if I try to pick default instance it gives another error (see attached "Default Instance.jpg").
Then it gets to a page that asks me if I want to use the built-in System account or the domain user account.  I select Domain user account and put in the administrator username and password along with the domain name.
Then it asks if I want to use Windows Authentication Mode or Mixed Mode.  I select Windows Authentication mode.
Then it asks something about Collation designator and sort order.  I just leave this as how it is as I have no idea what they are talking about.  The default is "SQL collations: Dictionary order,case-insensitive, for use with 1252 Character Set"
I click next then click install and then here's where all my frustration begins.

I hope this is enough information. Can somebody please shed some light on the situation.

Who is Participating?
Hey Dominic,

I can definitely relate to the cost factor.  What did you find out from the installation error logs?

The best thing would probably be to check out the backup exec support site and read up on changing over the MSDE backup exec db to SQL - then you can have a number of instances.  1 for backup exec and 1 for your new software.  I am sure that some of this would also depend on the new software installation recommendations as well.
I am not an expert with SQL but have installed and patched various MSDE editions and SQL versions before and have ran into similar msi errors when patching / applying security updates.

You definitley need to choose NEW Instance otherwise you will need to read up on upgrading your backupexec MSDE instance to the server edition.  You still meight want to check the backupexec support website to see if there could be any conflicts as I have read that it is not good to run SQL 2005 and MSDE on the same machine as well.

Troubleshooting the installation of patches or setup requires you to check the setup logs like the error message says in your screenshot - see link below for more info:

start with the summary:  %ProgramFiles%\Microsoft SQL Server\90\Setup Bootstrap\LOG\Summary.txt

There you will find more detailed information to lookup regarding the exact reason why it the installtion failed and you might want to search technet for installition errors and codes found in the log.
dominicbenjaminAuthor Commented:
Hi Mad Mark,

I heard that it is not a good idea to run MSDE and SQL 2005 on the same box either, but it's a really complicated situation where we have a small remote office that we do not want to have more than one server in.  It would just add a whole set of costs that we are trying to avoid right now.  I was hoping there was another way around it.  
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