Question : WSUS 3.0 SP2 Installation Problem

Hello to all Experts,
I am hoping that one of you can assist me with an issue with my WSUS server. This server also serves as my secondary Domain Controller, and my backup DNS server.
Last week one of my drives began to fail on this server, and I had to replace the drive. There are 3 146 GB drives in the server configured in a raid configuration, so I was lucky enough that after replacing the drive it rebuilt itself.
Afterwards I opened my WSUS 3.0 SP2 console, and noticed that the last time the server has synchronized with Microsoft Update was June 24th. So I attempted to synchronize manually. I let the synchronization run for about 12 hours (even though this usually takes less than a half hour) and the synchronization stayed stuck at 0%.
I looked at my last time I had run updates on this server (turned out to be June 24th) and noticed that .net framework version 4.0 had been installed on this date. I then attempted to uninstall the .net framework, thinking that this could be the issue, and then restarted the server after uninstalling .net framework 4.0 successfully.
I then attempted to run the synchronization from WSUS again and still stuck at 0%. I checked the event logs and did not see anything with regards to synchronization failing.
I then uninstalled WSUS, from Control Panel, and made sure I kept the databases and then restarted thee server, and attempted to reinstall WSUS, but now WSUS will not reinstall. There have been no other versions of WSUS installed on this server, so this was never an upgrade in case anybody wonders if this was an upgrade from an older version of WSUS.
The error message I get when reinstalling WSUS is the following:
Windows Server Update Services 3.0 SP2 could not be installed. For more information, see the Setup log "C:\DOCUME~1\ADMINI~1.STA\LOCALS~1\Temp\1\WSUSSetup.log".
Here is a copy of the setup log”
2010-07-04 09:40:59  Success   MWUSSetup          Validating pre-requisites...
2010-07-04 09:42:14  Error     MWUSSetup          Failed to determine if an higher version of WSUS is installed. Assuming it is not... (Error 0x80070002: The system cannot find the file specified.)
2010-07-04 09:43:19  Success   MWUSSetup          Initializing installation details
2010-07-04 09:43:19  Success   MWUSSetup          Installing ASP.Net
2010-07-04 09:44:12  Success   MWUSSetup          ASP.Net is installed successfully
2010-07-04 09:44:12  Success   MWUSSetup          Installing wYukon using MSI on Win2k3
2010-07-04 09:44:12  Success   MWUSSetup          wYukon is already installed on this machine
2010-07-04 09:44:12  Success   MWUSSetup          Installing WSUS...
2010-07-04 09:44:33  Success   CustomActions.Dll  Unable to get INSTALL_LANGUAGE property, calculating it...
2010-07-04 09:44:33  Success   CustomActions.Dll  Successfully set propery of WSUS admin groups' full names
2010-07-04 09:44:43  Success   CustomActions.Dll  .Net framework path: C:\WINDOWS\Microsoft.NET\Framework64\v2.0.50727
2010-07-04 09:44:45  Success   CustomActions.Dll  Creating user group: WSUS Reporters with Description: WSUS Administrators who can only run reports on the Windows Server Update Services server.
2010-07-04 09:44:45  Success   CustomActions.Dll  Creating WSUS Reporters user group
2010-07-04 09:44:45  Success   CustomActions.Dll  WSUS Reporters user group already exists
2010-07-04 09:44:45  Success   CustomActions.Dll  Successfully created WSUS Reporters user group
2010-07-04 09:44:45  Success   CustomActions.Dll  Creating user group: WSUS Administrators with Description: WSUS Administrators can administer the Windows Server Update Services server.
2010-07-04 09:44:45  Success   CustomActions.Dll  Creating WSUS Administrators user group
2010-07-04 09:44:45  Success   CustomActions.Dll  WSUS Administrators user group already exists
2010-07-04 09:44:45  Success   CustomActions.Dll  Successfully created WSUS Administrators user group
2010-07-04 09:44:45  Success   CustomActions.Dll  Successfully created WSUS user groups
2010-07-04 09:44:45  Success   CustomActions.Dll  Succesfully set binary SID property
2010-07-04 09:44:45  Success   CustomActions.Dll  Succesfully set binary SID property
2010-07-04 09:44:45  Success   CustomActions.Dll  Successfully set binary SID properties
2010-07-04 10:01:49  Error     MWUSSetup          InstallWsus: MWUS Installation Failed (Error 0x80070643: Fatal error during installation.)
2010-07-04 10:01:49  Error     MWUSSetup          CInstallDriver::PerformSetup: WSUS installation failed (Error 0x80070643: Fatal error during installation.)
2010-07-04 10:01:49  Error     MWUSSetup          CSetupDriver::LaunchSetup: Setup failed (Error 0x80070643: Fatal error during installation.)
2010-07-04 10:13:10  Error     MWUSSetup          CWatsonHelper::Init: Failed to load WER library. (Error 0x8007007E: The specified module could not be found.)
2010-07-04 10:13:10  Error     MWUSSetup          CSetupDriver::ReportFailure: Failed to initalize the CWatsonHelper.  This is expected on pre-Vista machines. (Error 0x80004005: Unspecified error)
2010-07-04 10:13:10  Error     MWUSSetup          DoInstall: Wsus setup failed (Error 0x80070643: Fatal error during installation.)
If anyone can assist with this issue it will be greatly appreciated:
Thank you,

Answer : WSUS 3.0 SP2 Installation Problem

Go to HKEY_LOCAL_MACHINE\Software\Microsoft and rename Microsoft SQL Server,
I suggest to rename it to OLDMicrosoft SQL Server Then go to folder %ProgramFiles% and rename Microsoft SQL Server , I suggest to  rename it to OLDMicrosoft SQL Server after this try to reinstall wsus again and share your result.