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SQL Server 2008 R2 setup.exe will not run

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We have a Server 2008 R2 server with SQL Server 2008 on it that we want to upgrade to SQL Server 2008 R2 so that we can install DPM 2012. However, we are running into an issue upgrading SQL Server. Whenever we try to run setup for SQL 2008 R2, it will open up a command prompt window for half a second, close it, and do nothing.

We have several ISOs of SQL Server 2008 R2 from our volume licensing agreement all downloaded directly from Microsoft. We have used two different virtual drives to mount the ISOs and try to install from them, but it produces the same result. Burning them to a disk also produces the same result. Originally when I started researching this, I thought that this could have been a case of bad media. So we tested the ISOs on other servers and computers and it worked fine for them so we ruled out bad media.

Next we checked the SQLsetup.log file to see what was happening and found this error:

06/01/2012 17:01:02.334 .Net security policy file does exist
06/01/2012 17:01:02.334 Attempting to load .Net security policy file
06/01/2012 17:01:02.337 Error: Cannot load .Net security policy file
06/01/2012 17:01:02.337 Error: InitializeSqlSetupCodeGroupCore(64bit) failed
06/01/2012 17:01:02.338 Error: InitializeSqlSetupCodeGroup failed: 0x80004005
06/01/2012 17:01:02.338 Setup closed with exit code: 0x80004005

After doing some research about this error, we found that caspol.exe should be able to resolve the issue. So we tried the command:

C:\Windows\Microsoft.NET\Framework\v2.0.50727\caspol.exe -machine -reset

The command completes successfully, but does not solve the error. So we tried reinstalling .Net and running the same command, but had the same results. And with that, we've run out of ideas short of removing SQL and attempting to reinstall it.

Any help would be greatly appreciated.


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