SCE 2010-Installation fails with error 1603

Background: When installing SCE 2010 you get a message that indicates that the installation could not be completed. After opening the log file you find that the installer returns error code 1603. All pre-requisites are installed and everything is set up correctly (well, almost everything obviously).


After doing some research it turns out that if you select the option to use Microsoft Update the system will try to connect to Microsoft Update and if there are any issues the installation will fail. I proceeded to unselect that check box and my installation proceeded smoothly. I think Microsoft should display a more user friendly message and indicate what failed so it can be addressed but not selecting the check box is an easy enough fix.

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