SQL Server 2005 Setup could not connect to the database service for server configuration.

Hi,

I am trying to install SQL Express 2005 (SP3 included in MSI). This is a clean install and no previous versions of SQL have ever been installed. The error I am getting is:

SQL Server Setup could not connect to the database service for server configuration. The error was: [Microsoft][SQL Native Client][SQL Server]Login failed for user 'sa'. Refer to server error logs and setup logs for more information. For details on how to view setup logs, see "How to View Setup Log Files" in SQL Server Books Online.

I have tried Windows mode, mixed mode with and without a passsword for the sa account but still the same error.

Please can anyone help - thanks.

Here is the rror log:

2010-03-23 16:00:32.71 Server      Microsoft SQL Server 2005 - 9.00.4035.00 (Intel X86)
      Nov 24 2008 13:01:59
      Copyright (c) 1988-2005 Microsoft Corporation
      Express Edition on Windows NT 5.2 (Build 3790: Service Pack 2)

2010-03-23 16:00:32.74 Server      (c) 2005 Microsoft Corporation.
2010-03-23 16:00:32.74 Server      All rights reserved.
2010-03-23 16:00:32.74 Server      Server process ID is 32312.
2010-03-23 16:00:32.74 Server      Authentication mode is MIXED.
2010-03-23 16:00:32.74 Server      Logging SQL Server messages in file 'c:\Program Files (x86)\Microsoft SQL Server\MSSQL.1\MSSQL\LOG\ERRORLOG'.
2010-03-23 16:00:32.75 Server      Registry startup parameters:
2010-03-23 16:00:32.77 Server             -d c:\Program Files (x86)\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\master.mdf
2010-03-23 16:00:32.77 Server             -e c:\Program Files (x86)\Microsoft SQL Server\MSSQL.1\MSSQL\LOG\ERRORLOG
2010-03-23 16:00:32.77 Server             -l c:\Program Files (x86)\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\mastlog.ldf
2010-03-23 16:00:32.77 Server      Command Line Startup Parameters:
2010-03-23 16:00:32.77 Server             -m SqlSetup
2010-03-23 16:00:32.77 Server             SqlSetup
2010-03-23 16:00:32.77 Server             -Q
2010-03-23 16:00:32.77 Server             -q SQL_Latin1_General_CP1_CI_AS
2010-03-23 16:00:32.77 Server             -T 4022
2010-03-23 16:00:32.77 Server             -T 3659
2010-03-23 16:00:32.77 Server             -T 3610
2010-03-23 16:00:32.77 Server             -T 4010
2010-03-23 16:00:32.79 Server      SQL Server is starting at normal priority base (=7). This is an informational message only. No user action is required.
2010-03-23 16:00:32.79 Server      Detected 8 CPUs. This is an informational message; no user action is required.
2010-03-23 16:00:33.11 Server      Using dynamic lock allocation.  Initial allocation of 2500 Lock blocks and 5000 Lock Owner blocks per node.  This is an informational message only.  No user action is required.
2010-03-23 16:00:33.60 Server      Database Mirroring Transport is disabled in the endpoint configuration.
2010-03-23 16:00:33.65 spid5s      Warning ******************
2010-03-23 16:00:33.67 spid5s      SQL Server started in single-user mode. This an informational message only. No user action is required.
2010-03-23 16:00:33.73 spid5s      Starting up database 'master'.
2010-03-23 16:00:34.10 spid5s      Recovery is writing a checkpoint in database 'master' (1). This is an informational message only. No user action is required.
2010-03-23 16:00:34.31 spid5s      SQL Trace ID 1 was started by login "sa".
2010-03-23 16:00:34.40 spid5s      Starting up database 'mssqlsystemresource'.
2010-03-23 16:00:34.44 spid5s      The resource database build version is 9.00.4035. This is an informational message only. No user action is required.
2010-03-23 16:00:34.89 spid5s      Password policy update was successful.
2010-03-23 16:00:34.92 spid7s      Starting up database 'model'.
2010-03-23 16:00:34.92 spid5s      Server name is '109-104-81-154\SQLEXPRESS'. This is an informational message only. No user action is required.
2010-03-23 16:00:34.92 spid5s      Starting up database 'msdb'.
2010-03-23 16:00:35.30 Server      A self-generated certificate was successfully loaded for encryption.
2010-03-23 16:00:35.30 Server      Server local connection provider is ready to accept connection on [ \\.\pipe\SQLLocal\SQLEXPRESS ].
2010-03-23 16:00:35.31 Server      Dedicated administrator connection support was not started because it is not available on this edition of SQL Server. This is an informational message only. No user action is required.
2010-03-23 16:00:35.36 Server      SQL Server is now ready for client connections. This is an informational message; no user action is required.
2010-03-23 16:00:35.71 spid7s      Clearing tempdb database.
2010-03-23 16:00:35.95 spid7s      Starting up database 'tempdb'.
2010-03-23 16:00:36.00 spid5s      Recovery is complete. This is an informational message only. No user action is required.
2010-03-23 16:00:36.14 Logon       Error: 18456, Severity: 14, State: 10.
2010-03-23 16:00:36.14 Logon       Login failed for user 'sa'. [CLIENT: <local machine>]
2010-03-23 16:00:38.80 spid5s      SQL Server is terminating in response to a 'stop' request from Service Control Manager. This is an informational message only. No user action is required.
2010-03-23 16:00:38.80 spid5s      SQL Trace was stopped due to server shutdown. Trace ID = '1'. This is an informational message only; no user action is required.