Understanding Error 1603 in System Center Essentials 2010

Error code 1603 is a generic Windows Installer (MSI) fatal error that indicates the installation encountered a problem and could not complete. When this error occurs during System Center Essentials (SCE) 2010 installation, it can be frustrating because the error message itself provides little detail about what actually went wrong.

The full error typically appears as:

Installation failed with error code 1603.
Fatal error during installation.

SCE 2010 Prerequisites

Before troubleshooting the error, verify that all prerequisites are met. SCE 2010 requires:

Hardware Requirements

  • Minimum 2 GHz processor (dual-core recommended)
  • Minimum 2 GB RAM (4 GB recommended)
  • Minimum 10 GB free disk space for installation
  • Additional space for the SQL Server database

Software Requirements

PrerequisiteVersion
Operating SystemWindows Server 2008 SP2 or Windows Server 2008 R2
.NET Framework3.5 SP1
Windows PowerShell2.0
SQL ServerSQL Server 2008 SP1 (can be installed during setup)
IISIIS 7.0 with ASP.NET, Windows Authentication, IIS 6 Metabase Compatibility
WSUSWSUS 3.0 SP2
Windows Installer4.5 or later

Required Windows Features

Ensure the following roles and features are installed:

# Check and install required features on Server 2008 R2
Import-Module ServerManager
Add-WindowsFeature Web-Server, Web-ASP-Net, Web-Windows-Auth, Web-Metabase, NET-Framework-Core

The Microsoft Update Connectivity Issue

The most common cause of error 1603 during SCE 2010 installation is the Microsoft Update option in the setup wizard. When you select the option to use Microsoft Update during installation:

  1. The installer attempts to connect to Microsoft Update servers
  2. If the connection fails, times out, or encounters a proxy issue, the setup process throws error 1603
  3. The error message does not indicate that Microsoft Update was the cause

The Fix

During the SCE 2010 setup wizard, on the Microsoft Update page:

  1. Uncheck the option “Use Microsoft Update when I check for updates”
  2. Continue with the installation
  3. After installation completes, you can enable Microsoft Update separately through Windows Update settings or WSUS configuration

Other Common Causes of Error 1603

1. Pending System Reboot

Windows may have a pending reboot from a previous installation or update. The installer checks for this condition and may fail if a reboot is needed.

Check for pending reboots:

# Check the registry for pending reboot flags
$paths = @(
    "HKLM:\SOFTWARE\Microsoft\Windows\CurrentVersion\Component Based Servicing\RebootPending",
    "HKLM:\SOFTWARE\Microsoft\Windows\CurrentVersion\WindowsUpdate\Auto Update\RebootRequired",
    "HKLM:\SYSTEM\CurrentControlSet\Control\Session Manager"
)

foreach ($path in $paths) {
    if (Test-Path $path) {
        Write-Host "Pending reboot indicator found at: $path"
        if ($path -match "Session Manager") {
            $val = Get-ItemProperty -Path $path -Name "PendingFileRenameOperations" -ErrorAction SilentlyContinue
            if ($val) { Write-Host "  PendingFileRenameOperations is set" }
        }
    }
}

Fix: Reboot the server before attempting the installation again.

2. WMI Repository Corruption

SCE 2010 relies heavily on WMI (Windows Management Instrumentation). If the WMI repository is corrupted, the installer will fail.

Verify WMI integrity:

winmgmt /verifyrepository

If the result is “WMI repository is inconsistent,” repair it:

:: Stop the WMI service
net stop winmgmt

:: Rebuild the WMI repository
winmgmt /resetrepository

:: Restart the WMI service
net start winmgmt

For a more thorough repair:

net stop winmgmt
cd %windir%\system32\wbem
rd /s /q repository
winmgmt /resetrepository

3. Insufficient Permissions

The installation must run under an account with local administrator privileges and, if joining an Active Directory domain for management, domain admin rights.

Fix: Right-click the installer and select Run as administrator. Ensure the installation account is a member of the local Administrators group.

4. Antivirus Interference

Real-time antivirus scanning can lock files during installation, causing the MSI to fail.

Fix: Temporarily disable real-time antivirus scanning during installation. Add exceptions for the installation directory and the TEMP folder.

5. Short File Name (8.3) Generation Disabled

Some MSI packages require 8.3 short file name support. If this is disabled on the installation volume, the installer may fail.

Check the setting:

fsutil 8dot3name query C:

Enable if needed:

fsutil 8dot3name set C: 0

6. SQL Server Connection Issues

If SCE setup is connecting to an existing SQL Server instance, verify:

  • SQL Server is running and accessible
  • The installation account has sysadmin rights on the SQL instance
  • Named Pipes and TCP/IP protocols are enabled in SQL Server Configuration Manager
  • SQL Server Browser service is running (for named instances)
# Test SQL Server connectivity
sqlcmd -S "localhost\SCEDB" -Q "SELECT @@VERSION"

Analyzing the Installation Logs

The installation log files are the most valuable resource for diagnosing error 1603.

Finding the Logs

:: Open the TEMP folder where MSI logs are stored
explorer %TEMP%

Look for files with names like:

  • SCESetup.log
  • SCESetupxxxxxxxx.log
  • MSIxxxxx.log

Reading the Logs

Open the log file and search for “error 1603” or “return value 3” (which indicates a fatal error). Then look at the lines immediately above the error for the actual cause.

Common patterns in the log:

// Microsoft Update connectivity failure
MSI (s) (48:50) [14:23:15:123]: Note: 1: 1706 2: -2147023728
Action ended 14:23:15: InstallFinalize. Return value 3.

// Permission issue
Error: Cannot create registry key Software\Microsoft\SCE. Verify that you have
sufficient permissions to access the registry.

// Missing prerequisite
Prerequisite check failed: .NET Framework 3.5 SP1 is required.

Enabling Verbose Logging

For more detail, run the installer with verbose logging enabled:

msiexec /i "SCE2010.msi" /l*v "C:\SCEInstall.log"

The verbose log will include detailed information about every action the installer performs.

Step-by-Step Troubleshooting Process

If you encounter error 1603, follow this systematic approach:

  1. Reboot the server to clear any pending reboot flags
  2. Check the installation log for the specific cause
  3. Uncheck Microsoft Update during setup and retry
  4. Verify all prerequisites are installed and at the correct versions
  5. Run the installer as administrator to rule out permission issues
  6. Disable antivirus temporarily and retry
  7. Verify WMI health and repair if necessary
  8. Check SQL Server connectivity if using an existing instance
  9. Clean up previous installation attempts by removing partial SCE entries from Programs and Features
  10. Run the System Readiness Tool (CheckSUR) to repair Windows servicing:
:: Download and run the System Update Readiness Tool
DISM /Online /Cleanup-Image /ScanHealth
DISM /Online /Cleanup-Image /RestoreHealth

Cleaning Up After a Failed Installation

If the installation fails and you need to start fresh:

  1. Open Programs and Features and uninstall any partially installed SCE components
  2. Remove the SCE installation directory (default: C:\Program Files\System Center Essentials)
  3. Clean up registry entries:
reg delete "HKLM\SOFTWARE\Microsoft\System Center Essentials" /f
  1. If a SQL Server instance was created for SCE, you may need to drop the database:
USE master;
DROP DATABASE SystemCenterEssentials;
  1. Reboot and attempt installation again

Summary

Error 1603 during SCE 2010 installation is most commonly caused by the Microsoft Update connectivity check failing during setup. Unchecking the Microsoft Update option in the installation wizard is the simplest fix. If that does not resolve the issue, check the installation logs for the specific failure point and work through the systematic troubleshooting steps: verify prerequisites, clear pending reboots, repair WMI, check permissions, and ensure SQL Server connectivity.