Verify the following:
1. Login to the server with a user that has Administrative rights to the machine.
2. In SQL Server Management studio, if the database exists already, check that the compatibility level on the database is set to SQL Server 2008.
3. Add or modify this key value in the registry:
HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\Installer, DisableMSI, DWORD = 0
4. Temporarily disable any anti-virus that is running on the server
5. Retry the installation again.
If the above steps to not resolve the install error, then please request assistance from technical support.