I was trying to install various versions of SQL Server 2005 on my Windows 7 Professional and it was failing to install the SQL Server Service no matter the version.
The solution was to run the msi file as a standalone install. The command is as below. Change paths as needed.
runas /user:administrator "msiexec /i C:\MyPath\SQL_2005_Std_x64\DISC1\Setup\SqlRun_SQL.msi"