SCCM advanced client install failing jh

We have a problem installing the SCCM agent on two Windows 2003 servers, both with IIS.

We normally deploy via Windows Update but as this was failing we also tried installing by manually running ccmsetup - both as and not as a service. All report the same errors. I've included what I think are the relevant errors below as a code snippet.

Things I have checked:

1) The Administrator account had been renamed so I put it back to Administrator
2) The IIS accounts do match the machine name

Note that we were provided these machines as VM images in a batch of five. They were dis-joined from their original domain and joined to ours. Three of the five are fine but the two mentioned are reporting the error below.

Extract from ccmsetup.log:


<![LOG[MSI: Action 13:44:50: RegisterUser. Registering user]LOG]!><time="13:44:50.771+000" date="03-18-2011" component="ccmsetup" context="" type="0" thread="3996" file="msiutil.cpp:374">
<![LOG[MSI: Action 13:44:50: CcmFixupServiceConfigInit. ]LOG]!><time="13:44:50.771+000" date="03-18-2011" component="ccmsetup" context="" type="0" thread="3996" file="msiutil.cpp:374">
<![LOG[MSI: Action 13:44:50: CcmSetObjectSecurityInit. Applying security permissions]LOG]!><time="13:44:50.849+000" date="03-18-2011" component="ccmsetup" context="" type="0" thread="3996" file="msiutil.cpp:374">
<![LOG[MSI: Setup failed due to unexpected circumstances
The error code is 80070534]LOG]!><time="13:44:51.005+000" date="03-18-2011" component="ccmsetup" context="" type="3" thread="3996" file="msiutil.cpp:360">
<![LOG[Installation failed with error code 1603]LOG]!><time="13:44:51.317+000" date="03-18-2011" component="ccmsetup" context="" type="3" thread="3996" file="msiutil.cpp:889">
<![LOG[Next retry in 120 minute(s)...]LOG]!><time="13:44:51.489+000" date="03-18-2011" component="ccmsetup" context="" type="0" thread="3996" file="ccmsetup.cpp:8348">


Extract from client.msi.log:


MSI (s) (78!44) [14:19:33:242]: Creating MSIHANDLE (9855) of type 790531 for thread 2116
MSI (s) (78!44) [14:19:33:242]: Creating MSIHANDLE (9856) of type 790531 for thread 2116
Action start 14:19:33: CcmSetObjectSecurityInit.
MSI (s) (78!44) [14:19:33:242]: Closing MSIHANDLE (9856) of type 790531 for thread 2116
[14:19:33] @@ERR:25001
MSI (s) (78!44) [14:19:33:242]: Product: Configuration Manager Client -- Error 25001. Setup failed due to unexpected circumstances
The error code is 80070534


Event log entry:


Event Type:	Error
Event Source:	MsiInstaller
Event Category:	None
Event ID:	10005
Date:		18/03/2011
Time:		14:19:33
User:		NT AUTHORITY\SYSTEM
Computer:	SERVER1
Description:
Product: Configuration Manager Client -- Error 25001. Setup failed due to unexpected circumstances
The error code is 80070534

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 7b 32 36 30 39 45 44 46   {2609EDF
0008: 31 2d 33 34 43 34 2d 34   1-34C4-4
0010: 42 30 33 2d 42 36 33 34   B03-B634
0018: 2d 35 35 46 33 42 33 42   -55F3B3B
0020: 43 34 39 33 31 7d         C4931}

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