Error 70038 On Install

Hi all

I packaged .Net Framework & Sql Express with my setup project. When I attempt to install it on an XP (with SP2) system .Net Framework installs fine. The Sql Express gets about 25% of the way through then fails. Here's the content of the log file:

The following properties have been set:
Property: [AdminUser] = true {boolean}
Property: [ProcessorArchitecture] = Intel {string}
Property: [VersionNT] = 5.1.2 {version}
Running checks for package '.NET Framework 2.0', phase BuildList
Running external check with command line "C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpdotnetfxdotnetchk.exe"
Process exited with code 1
Setting value '1 {int}' for property 'DotNetInstalled'
Reading value 'Version' of registry key 'HKLMSoftwareMicrosoftInternet Explorer'
Read string value '6.0.2900.2180'
Setting value '6.0.2900.2180 {string}' for property 'IEVersion'
The following properties have been set for package '.NET Framework 2.0':
Property: [DotNetInstalled] = 1 {int}
Property: [IEVersion] = 6.0.2900.2180 {string}
Running checks for command 'dotnetfxinstmsia.exe'
Result of running operator 'ValueExists' on property 'VersionNT': true
Result of checks for command 'dotnetfxinstmsia.exe' is 'Bypass'
Running checks for command 'dotnetfxWindowsInstaller-KB893803-v2-x86.exe'
Result of running operator 'ValueExists' on property 'Version9x': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '5.0.3': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionMsi' and value '3.0': true
Result of checks for command 'dotnetfxWindowsInstaller-KB893803-v2-x86.exe' is 'Bypass'
Running checks for command 'dotnetfxdotnetfx.exe'
Result of running operator 'ValueNotEqualTo' on property 'DotNetInstalled' and value '0': true
Result of checks for command 'dotnetfxdotnetfx.exe' is 'Bypass'
'.NET Framework 2.0' RunCheck result: No Install Needed
Running checks for package 'SQL Server 2005 Express Edition', phase BuildList
Running external check with command line "C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpSqlExpressSqlExpressChk.exe"
Process exited with code 1
Setting value '1 {int}' for property 'SQLExpressInstalled'
The following properties have been set for package 'SQL Server 2005 Express Edition':
Property: [SQLExpressInstalled] = 1 {int}
Running checks for command 'SqlExpresssqlexpr32.exe'
Result of running operator 'ValueEqualTo' on property 'SQLExpressInstalled' and value '0': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionNT' and value '5.1': true
Result of checks for command 'SqlExpresssqlexpr32.exe' is 'Bypass'
Running checks for command 'SqlExpresssqlexpr32.exe'
Result of running operator 'ValueEqualTo' on property 'SQLExpressInstalled' and value '0': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '5.1': false
Result of running operator 'ValueEqualTo' on property 'AdminUser' and value 'false': false
Result of running operator 'ValueExists' on property 'Version9x': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '5.1.2': false
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of checks for command 'SqlExpresssqlexpr32.exe' is 'Install'
'SQL Server 2005 Express Edition' RunCheck result: Install Needed
EULA for components 'SQL Server 2005 Express Edition' was accepted.
Copying files to temporary directory "C:DOCUME~1GaryLOCALS~1TempVSDA0.tmp"
Copying from '\.hostShared FoldersG-CDRWMovieCollection SetupDebugSqlExpresssqlexpr32.exe' to 'C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpSqlExpresssqlexpr32.exe'
Running checks for package 'SQL Server 2005 Express Edition', phase BeforePackage
Running external check with command line "C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpSqlExpressSqlExpressChk.exe"
Process exited with code 1
Setting value '1 {int}' for property 'SQLExpressInstalled'
The following properties have been set for package 'SQL Server 2005 Express Edition':
Property: [SQLExpressInstalled] = 1 {int}
Running checks for command 'SqlExpresssqlexpr32.exe'
Result of running operator 'ValueEqualTo' on property 'SQLExpressInstalled' and value '0': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '5.1': false
Result of running operator 'ValueEqualTo' on property 'AdminUser' and value 'false': false
Result of running operator 'ValueExists' on property 'Version9x': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '5.1.2': false
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of checks for command 'SqlExpresssqlexpr32.exe' is 'Install'
'SQL Server 2005 Express Edition' RunCheck result: Install Needed
Verifying file integrity of C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpSqlExpresssqlexpr32.exe
WinVerifyTrust returned 0
File trusted
Installing using command line '"C:DOCUME~1GaryLOCALS~1TempVSDA0.tmpSqlExpresssqlexpr32.exe" -q /norebootchk /qn reboot=ReallySuppress addlocal=all instancename=SQLEXPRESS SQLAUTOSTART=1'
Process exited with code 70038
Status of package 'SQL Server 2005 Express Edition' after install is 'InstallFailed'


-----------

Any ideas?

TIA

Gary