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Office Communications Server 2007 R2 Enterprise Edition Install Application Host Fails

I am trying to install Office Communications Server 2007 R2 on a Windows 2008 Server Standard install but I'm getting stuck when it tries to install the application host. I originally tried this on a 2008 R2 server but I got stuck at the same place. I am stuck at Step 1 of Add Enterprise Edition Server to Pool. After clicking Run to add the server to the pool I get the following error:

Failure
[0xC3EC796A] MSI installation was unsuccessful. Please check the log file for more information.

Inside of the log file, the following error is listed:

MSI (c) (30:D4) [12:52:50:318]: Windows Installer installed the product. Product Name: Microsoft Office Communications Server 2007 R2, Application Host. Product Version: 3.5.6907.0. Product Language: 1033. Installation success or error status: 1603.

I have spent the last 3 days trying to find out what's causing this error. There is nothing in the Event Logs. Am I missing something?
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BusbarSolutions Architect

Commented:
I think that the installation file is corrupted can you try another ISO

Author

Commented:
I just re-downloaded the ISO and it's still giving the same error.
Most Valuable Expert 2015

Commented:
Many failed OCS installations are caused by an Interfering Windows Update. First in "Programs and Features" of your Control Panel remove KB974571, Reboot, then run the Patch below (ocsasnfix.exe):

http://go.microsoft.com/fwlink/?LinkId=168248

After that reboot again, and now try resuming the OCS installation.

Author

Commented:
Removed update, reboot, ran patch, reboot then reran OCS and ran into the same issue.
Commented:
The problem was with a group policy blocking something. Not exactly sure which policy was affecting it, but blocking inheritance for all policies allowed the installation to finish.