Ok, I have followed everyone's advice. Still this dumb error won't go away. I am building SCCM on Windows 2008 Std Server, connecting to remote SQL instance (SQL 2008 R2) on a Windows 2003 x64 Clustered server.
I ran the "fsutil.exe behavior set disable8dot3 0" on both cluster nodes, and on the SCCM server. Still does not let me install. Also added my admin account to the local Administrator's group on the SQL server, which didn't make sense to me for I am a member of the Domain Admins Group which is a local admin as well. So now what am I missing?