SQL Server Installation Failure: Rule "Setup account priveleges" failed.

I am trying to install a new installation of DLO 7.6 on a Windows 2008 R2 SP1 server. The domain setup account I'm using has all the neccessary priveleges (. Unfortunately I cannot install the SQL Server 2012 express packaged with DLO.

 

This is the required rights list:

Local Policy Object Display Name	User Right
Backup files and directories	SeBackupPrivilege
Debug Programs	SeDebugPrivilege
Manage auditing and security log	SeSecurityPrivilege

 

This is the actual user rights for the setup account.

 

Here is the error I receive.

 

Please help as I'm pretty much stuck until i can figure this out.

 

Many Thanks,

Steven