Setup failed for SQL Server 2005 express edition [SQLEXPR.exe]

Good day All,
My client has already SQL Server 2005 SP3 installed. We are in process of providing him a new .net application but he wants existing version of SQL untouched. We asked him to install SQL Express version (SQLEXPR.exe) and configured web.config to local (.\SQLExpress).
However client is getting message - 
"Setup failed.
For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft+SQL+Server&ProdVer=9.00.4035.00&EvtSrc=setup.rll&EvtID=50000&EvtType=sharedsetup%5csharedsetupactions.cpp%40LoadResourcesAction%40sqls%3a%3aLoadResourcesAction%3a%3aperform%400x0"
I am in a fix. What could have gone wrong? Clearly it has something to with already existing version. Just for information, client keeps his SQL services (using SQL Server Configuration Manager) in a stopped state. Could that be an issue?
Appreciate any one helping me out.
Thanks
Sandeepbwes

Good Day dave_gona
Received the log :
Microsoft SQL Server 2005 Setup beginning at Mon Apr 20 16:39:44 2015
Process ID      : 9756
e:\6f54eb72f88682db6222c7ed4d9c6643\setup.exe Version: 2005.90.1399.0
Running: LoadResourcesAction at: 2015/3/20 16:39:44
Complete: LoadResourcesAction at: 2015/3/20 16:39:44, returned true
Running: ParseBootstrapOptionsAction at: 2015/3/20 16:39:44
Loaded DLL:e:\6f54eb72f88682db6222c7ed4d9c6643\xmlrw.dll Version:2.0.3604.0
Complete: ParseBootstrapOptionsAction at: 2015/3/20 16:39:44, returned true
Running: ValidateWinNTAction at: 2015/3/20 16:39:44
Complete: ValidateWinNTAction at: 2015/3/20 16:39:44, returned true
Running: ValidateMinOSAction at: 2015/3/20 16:39:44
Complete: ValidateMinOSAction at: 2015/3/20 16:39:44, returned true
Running: PerformSCCAction at: 2015/3/20 16:39:44
Complete: PerformSCCAction at: 2015/3/20 16:39:44, returned true
Running: ActivateLoggingAction at: 2015/3/20 16:39:44
Complete: ActivateLoggingAction at: 2015/3/20 16:39:44, returned true
Running: DetectPatchedBootstrapAction at: 2015/3/20 16:39:44
Complete: DetectPatchedBootstrapAction at: 2015/3/20 16:39:44, returned true
Running: LaunchPatchedBootstrapAction at: 2015/3/20 16:39:44
Error: Action "LaunchPatchedBootstrapAction" threw an exception during execution.  Error information reported during run:
"C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\setup.exe" finished and returned: 1603
Aborting queue processing as nested installer has completed
Message pump returning: 1603

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      IACCEPTSQLSERVERLICENSETERMS:  true
      INDICATEPROGRESS:              false
      INSTALLSHAREDDIR:              C:\Program Files\Microsoft SQL Server\
      INSTALLSHAREDWOWDIR:           C:\Program Files (x86)\Microsoft SQL Server\
      INSTALLSQLDATADIR:             <empty>
      INSTANCEDIR:                   C:\Program Files\Microsoft SQL Server\
      INSTANCEID:                    SQLFASHION
      INSTANCENAME:                  SQLFASHION
      ISSVCACCOUNT:                  NT AUTHORITY\Network Service
      ISSVCPASSWORD:                 <empty>
      ISSVCSTARTUPTYPE:              Automatic
      MATRIXCMBRICKCOMMPORT:         0
      MATRIXCMSERVERNAME:            <empty>
      MATRIXNAME:                    <empty>
      NPENABLED:                     0
      PID:                           *****
      QUIET:                         false
      QUIETSIMPLE:                   false
      ROLE:                          AllFeatures_WithDefaults
      RSINSTALLMODE:                 DefaultNativeMode
      RSSHPINSTALLMODE:              DefaultSharePointMode
      RSSVCACCOUNT:                  <empty>
      RSSVCPASSWORD:                 <empty>
      RSSVCSTARTUPTYPE:              Automatic
      SAPWD:                         *****
      SECURITYMODE:                  SQL
      SQLBACKUPDIR:                  <empty>
      SQLCOLLATION:                  Latin1_General_CI_AI
      SQLSVCACCOUNT:                 NT Service\MSSQL$SQLFASHION
      SQLSVCPASSWORD:                <empty>
      SQLSVCSTARTUPTYPE:             Automatic
      SQLSYSADMINACCOUNTS:           idea-pc\lenovo
      SQLTEMPDBDIR:                  <empty>
      SQLTEMPDBLOGDIR:               <empty>
      SQLUSERDBDIR:                  <empty>
      SQLUSERDBLOGDIR:               <empty>
      SQMREPORTING:                  false
      TCPENABLED:                    0
      UIMODE:                        AutoAdvance
      UpdateEnabled:                 true
      UpdateSource:                  MU
      X86:                           false
      Configuration file:            C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140205_122837\ConfigurationFile.ini
    Detailed results:
      Feature:                       Database Engine Services
      Status:                        Failed: see logs for details
      Reason for failure:            An error occurred for a dependency of the feature causing the setup process for the feature to fail.
      Next Step:                     Use the following information to resolve the error, and then try the setup process again.
      Component name:                SQL Server Common Files
      Component error code:          2337
      Component log file:            C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140205_122837\sql_common_core_Cpu64_1.log
      Error description:             The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2337.
      Error help link:              
      Feature:                       SQL Server Replication
      Status:                        Failed: see logs for details
      Reason for failure:            An error occurred for a dependency of the feature causing the setup process for the feature to fail.
      Next Step:                     Use the following information to resolve the error, and then try the setup process again.
      Component name:                SQL Server Common Files
      Component error code:          2337
      Component log file:            C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140205_122837\sql_common_core_Cpu64_1.log
      Error description:             The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2337.
      Error help link:              
      Feature:                       SQL Client Connectivity
      Status:                        Passed
      Feature:                       SQL Client Connectivity SDK
      Status:                        Passed
    Rules with failures:
    Global rules:
    Scenario specific rules:
    Rules report file:               C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140205_122837\SystemConfigurationCheck_Report.htm

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