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error upgrading SQL server from 2005  -- 2012

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Last Modified: 2014-05-07
Hello,
  I get the following error when I tried to upgrade my SQLserver . Please let me know how i can fix this issue.

=== Error 1 ==
TITLE: Microsoft SQL Server 2012 Service Pack 1 Setup
------------------------------

The following error has occurred:

The specified local group already exists. (Exception from HRESULT: 0x80070563)

Click 'Retry' to retry the failed action, or click 'Cancel' to cancel this action and continue setup.

TITLE: Microsoft SQL Server 2012 Service Pack 1 Setup
------------------------------

The following error has occurred:

The directory property cannot be found in the cache.


Click 'Retry' to retry the failed action, or click 'Cancel' to cancel this action and continue setup.

For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft%20SQL%20Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.3128.0&EvtType=0xED20C17F%25400x02C5AE77

--ERROR 2 -- I selected retry after error 1

For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft%20SQL%20Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.3128.0&EvtType=0xED20C17F%25400x02C5AE77

---------------------------------------------------------------
After pressing cancel button I see a dialog that with fail status for the database

I attach the log. Please have a look . The link provided in message does not work..

Thanks
msssql.err.txt
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