Hello All,
I had the issue described by the original poster, but the steps listed by David for using fsutil, etc. did not work. Completely uninstalling BE and deleting any remaining folders didn't help either. Incidentally, the system where I had the issue was an XP system that was using Remote Administrator, so it wasn't a media server.
After quite a bit of trial and error, I went into Control Panel, Add/Remove programs and found three different items listed for MSXML 4.0. I deleted ALL of them. Then I reran the BE setup, and it worked. Once setup completed, I checked my patch levels, there was a missing MSXML patch, so I went and applied that.
Hopefully this helps someone.
Message Edited by David Fosbenner on 04-26-200708:16 AM