I have been studying SharePoint for sometime and thought of installing SharePoint 2007 on my Windows Server 2008 R2 virtual machine. Finally, it gave me something to write about .

During the installation process, SharePoint 2007 SP2 setup failed with an error

Careful look at the configuration tasks showed it actually failed in step 8

As always I thought of looking at the issue further and checked the diagnostics file

Task evalprovision has failed with an unknown exception 
Exception: Microsoft.SharePoint.SPException: Provisioning did not succeed. Details: 
The site template was not provisioned successfully. Delete this site collection in Central Administration, 
and then create a new site collection. OriginalException: The Office SharePoint Server Standard Web application 
features feature must be activated at the web application level before this feature can be activated. 
---> System.InvalidOperationException: The Office SharePoint Server Standard Web application features feature must 
be activated at the web application level before this feature can be activated.
   at Microsoft.SharePoint.Publishing.PublishingResourcesFeatureHandler.<>c__DisplayClass3.<FeatureActivated>b__1()
   at Microsoft.SharePoint.SPSecurity.CodeToRunElevatedWrapper(Object state)
   at Microsoft.SharePoint.SPSecurity.<>c__DisplayClass4.<RunWithElevatedPrivileges>b__2()
   at Microsoft.SharePoint.Utilities.SecurityContext.RunAsProcess(CodeToRunElevated secureCode)
   at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(WaitCallback secureCode, Object param)
   at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(CodeToRunElevated secureCode)
   at Microsoft.SharePoint.Publishing.PublishingResourcesFeatureHandler.<>c__DisplayClass3.<FeatureActivated>b__0()

Looks like some sort of permission issue and System Event log confirms the same

Log Name:      System
Source:        Microsoft-Windows-DistributedCOM
Event ID:      10016
Task Category: None
Level:         Error
Keywords:      Classic
User:          NETWORK SERVICE
Description:
The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID {61738644-F196-11D0-9953-00C04FD919C1} and APPID {61738644-F196-11D0-9953-00C04FD919C1} to the user NT AUTHORITY\NETWORK SERVICE SID (S-1-5-20) from address LocalHost (Using LRPC). This security permission can be modified using the Component Services administrative tool.

Searched the APPID {61738644-F196-11D0-9953-00C04FD919C1} in registry and its IIS WAMREG admin Services. Let’s open Component Services from Administrative Tools and give Local Launch and Local Activation permission to Network Service.

We see that the Properties window is all greyed out. Since Windows Server 2008, TrustedInstaller is the account that has privileged permission on the registry. We will need to give Administrators account Full Control on the APPID to edit the IIS WAMREG DCOM Config.

Open the registry and found that Administrator account does not have enough permission.

When you try to give Full Control to Administrators account, you get

You will need to take Ownership on the key before you try to give the permission.

Click Advanced button –> click Owner (you will see TrustedInstaller is the owner) –> click Administrators and check Replace owner on subcontainers and objects and click OK. Now, click Full Control for Administrators and you will be able to apply the permission.

Now, in Component Services, add Network Service –> Local Launch and Local Activation permission to IIS WAMREG admin Service.

Tried running PSConfig tool again, but failed. We have to uninstalled and reinstalled MOSS 2007 and finally a happy screen .

Hope this helps,
Vivek Kumbhar

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