Admin.exe: New SQL Server 2008 Setup fails, SQLBrowser cannot start

During the setup of Microsoft SQL Server 2008 a problem could occure. An error message will appear which tells you that the SQLBrowser service cannot be launched.

Afterwards you need to cancel the operation which automatically cancel the whole setup.
The logfiles of the SQL Server setup show a problem at sql_browser_redist_sqlbrowser_cpu32
We found out that this problem is related between the patch level of the SQL Server and the installed security updates of the operating system.

Since November 2009 two security updates are automatically offered for installation:

- Update for Microsoft XML Core Services 6.0 Service Pack 2 (KB973686)
- Security Update for Microsoft XML Core Services 6.0 Service Pack 2 (KB954459)

If these updates are installed it is impossible to install e.g. the SQL Server 2008 Express Edition which can be downloaded from www.microsoft.com/sql. This edition which includes the Management Studio Express Edition is not equipped with a service pack. It seeems that this is the reason for this problem.

To solve the problem you need to go to your Control Panel. You can uninstall MSXML 6 Service Pack 2 (KB973686) from there.
Afterwards you can run the SQL Setup. It's no problem installing Service Pack 1 of the SQL server later. Additional you can install KB973686 and KB954459 afterwards.