MS SQL Express 2008 Installation Failure (Facility Code/Error Code : 1203/-2068643839)

Question

I am performing silent installation for a named instance of  SQL Server 2008 Express edition on a Windows 7 machine. The installation fails with Exit Facility Code
1203 and Error Code -2068643839.
PFB the details:
Operating System : Windows 7  Professional edition Service Pack 1
System Type : 64-Bit Operating System
SQL Express Installer : SQL Server 2008 Express Installer 32-bit (compatible with 64-bit OS)
I browsed through the MSDN and other forums. The root cause of this issue has been stated as the Windows user is not an administrator or windows user does not have the rights to modify the Microsoft SQL Server folder inside the Program Files folder. I have
checked for this common issues and the windows user is an administrator and has the sufficient rights to modify the
C:\Program Files(x86)\Microsoft SQL Server folder.
Appreciate if anyone can provide pointers to resolve this issue.
PFB the contents of Summary.txt file:
Overall summary:
  Final result:                  SQL Server installation failed. To continue, investigate the reason for the failure, correct the problem, uninstall SQL Server, and then
rerun SQL Server Setup.
  Exit code (Decimal):           -2068643839
  Exit facility code:            1203
  Exit error code:               1
  Exit message:                  SQL Server installation failed. To continue, investigate the reason for the failure, correct the problem, uninstall SQL Server, and then
rerun SQL Server Setup.
  Start time:                    2014-01-28 15:59:43
  End time:                      2014-01-28 16:01:03
  Requested action:              Install
  Log with failure:              C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Log\20140128_155901\sql_engine_core_inst_Cpu32_1.log
  Exception help link:           http://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=10.0.1600.22
Machine Properties:
  Machine name:                  ********
  Machine processor count:       4
  OS version:                    Windows Vista
  OS service pack:               Service Pack 1
  OS region:                     United States
  OS language:                   English (United States)
  OS architecture:               x64
  Process architecture:          32 Bit
  OS clustered:                  No
Product features discovered:
  Product              Instance             Instance ID                   
Feature                                  Language            
Edition              Version         Clustered
Package properties:
  Description:                   SQL Server Database Services 2008
  SQLProductFamilyCode:          {628F8F38-600E-493D-9946-F4178F20A8A9}
  ProductName:                   SQL2008
  Type:                          RTM
  Version:                       10
  SPLevel:                       0
  Installation location:         C:\Program Files (x86)\DHL\EasyShip v5.3\SQL Express\Express\x86\setup\
  Installation edition:          EXPRESS
User Input Settings:
  ACTION:                        Install
  ADDCURRENTUSERASSQLADMIN:      False
  AGTSVCACCOUNT:                 NT AUTHORITY\NETWORK SERVICE
  AGTSVCPASSWORD:                *****
  AGTSVCSTARTUPTYPE:             Disabled
  ASBACKUPDIR:                   Backup
  ASCOLLATION:                   Latin1_General_CI_AS
  ASCONFIGDIR:                   Config
  ASDATADIR:                     Data
  ASDOMAINGROUP:                 <empty>
  ASLOGDIR:                      Log
  ASPROVIDERMSOLAP:              1
  ASSVCACCOUNT:                  <empty>
  ASSVCPASSWORD:                 *****
  ASSVCSTARTUPTYPE:              Automatic
  ASSYSADMINACCOUNTS:            <empty>
  ASTEMPDIR:                     Temp
  BROWSERSVCSTARTUPTYPE:         Automatic
  CONFIGURATIONFILE:             C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Log\20140128_155901\ConfigurationFile.ini
  ENABLERANU:                    True
  ERRORREPORTING:                False
  FEATURES:                      SQLENGINE
  FILESTREAMLEVEL:               0
  FILESTREAMSHARENAME:           <empty>
  FTSVCACCOUNT:                  NT AUTHORITY\LOCAL SERVICE
  FTSVCPASSWORD:                 *****
  HELP:                          False
  INDICATEPROGRESS:              False
  INSTALLSHAREDDIR:              C:\Program Files (x86)\Microsoft SQL Server\
  INSTALLSHAREDWOWDIR:           C:\Program Files (x86)\Microsoft SQL Server\
  INSTALLSQLDATADIR:             <empty>
  INSTANCEDIR:                   C:\Program Files (x86)\Microsoft SQL Server\
  INSTANCEID:                    DHLEASYSHIP
  INSTANCENAME:                  DHLEASYSHIP
  ISSVCACCOUNT:                  NT AUTHORITY\NetworkService
  ISSVCPASSWORD:                 *****
  ISSVCSTARTUPTYPE:              Automatic
  MEDIASOURCE:                   C:\Program Files (x86)\DHL\EasyShip v5.3\SQL Express\Express\
  NPENABLED:                     1
  PID:                           *****
  QUIET:                         True
  QUIETSIMPLE:                   False
  RSINSTALLMODE:                 FilesOnlyMode
  RSSVCACCOUNT:                  <empty>
  RSSVCPASSWORD:                 *****
  RSSVCSTARTUPTYPE:              Automatic
  SAPWD:                         *****
  SECURITYMODE:                  SQL
  SQLBACKUPDIR:                  <empty>
  SQLCOLLATION:                  SQL_Latin1_General_CP1_CI_AS
  SQLSVCACCOUNT:                 NT AUTHORITY\SYSTEM
  SQLSVCPASSWORD:                *****
  SQLSVCSTARTUPTYPE:             Automatic
  SQLSYSADMINACCOUNTS:           NT AUTHORITY\SYSTEM
  SQLTEMPDBDIR:                  <empty>
  SQLTEMPDBLOGDIR:               <empty>
  SQLUSERDBDIR:                  <empty>
  SQLUSERDBLOGDIR:               <empty>
  SQMREPORTING:                  False
  TCPENABLED:                    1
  X86:                           False
  Configuration file:            C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Log\20140128_155901\ConfigurationFile.ini
Detailed results:
  Feature:                       Database Engine Services
  Status:                        Failed: see logs for details
  MSI status:                    Failed: see details below
  MSI error code:                0xB8A6B4FA
  MSI log file location:         C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Log\20140128_155901\sql_engine_core_inst_Cpu32_1.log
  MSI error description:         
  Configuration status:          Passed
Rules with failures:
Global rules:
Scenario specific rules:
Rules report file:               C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Log\20140128_155901\SystemConfigurationCheck_Report.htm

Answer 1

PFB the details from sql_engine_core_inst_Cpu32_1.log file:
=== Verbose logging started: 1/28/2014  16:00:53  Build type: SHIP UNICODE 5.00.7601.00  Calling process: C:\Program Files (x86)\Microsoft SQL Server\100\Setup Bootstrap\Release\x86\setup100.exe ===
MSI (c) (D8:20) [16:00:53:535]: Resetting cached policy values
MSI (c) (D8:20) [16:00:53:535]: Machine policy value 'Debug' is 0
MSI (c) (D8:20) [16:00:53:535]: ******* RunEngine:
           ******* Product: C:\Program Files (x86)\DHL\EasyShip v5.3\SQL Express\Express\x86\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi
           ******* Action:
           ******* CommandLine: **********
MSI (c) (D8:20) [16:00:53:535]: Client-side and UI is none or basic: Running entire install on the server.
MSI (c) (D8:20) [16:00:53:535]: Grabbed execution mutex.
MSI (c) (D8:20) [16:00:53:536]: Cloaking enabled.
MSI (c) (D8:20) [16:00:53:536]: Attempting to enable all disabled privileges before calling Install on Server
MSI (c) (D8:20) [16:00:53:536]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (08:30) [16:00:53:538]: Running installation inside multi-package transaction C:\Program Files (x86)\DHL\EasyShip v5.3\SQL Express\Express\x86\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi
MSI (s) (08:30) [16:00:53:538]: Grabbed execution mutex.
MSI (s) (08:94) [16:00:53:539]: Resetting cached policy values
MSI (s) (08:94) [16:00:53:539]: Machine policy value 'Debug' is 0
MSI (s) (08:94) [16:00:53:539]: ******* RunEngine:
           ******* Product: C:\Program Files (x86)\DHL\EasyShip v5.3\SQL Express\Express\x86\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi
           ******* Action:
           ******* CommandLine: **********
MSI (s) (08:94) [16:00:53:539]: Machine policy value 'TransformsSecure' is 0
MSI (s) (08:94) [16:00:53:539]: User policy value 'TransformsAtSource' is 0
MSI (s) (08:94) [16:00:53:539]: Machine policy value 'DisableUserInstalls' is 0
MSI (s) (08:94) [16:00:53:539]: Specified instance {B5153233-9AEE-4CD4-9D2C-4FAAC870DBE2} via transform :InstID01.mst;:InstName01.mst is already installed. MSINEWINSTANCE requires a new instance that is not installed.
MSI (s) (08:94) [16:00:53:539]: MainEngineThread is returning 1639
MSI (s) (08:30) [16:00:53:540]: User policy value 'DisableRollback' is 0
MSI (s) (08:30) [16:00:53:540]: Machine policy value 'DisableRollback' is 0
MSI (s) (08:30) [16:00:53:540]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (08:30) [16:00:53:540]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (08:30) [16:00:53:540]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (08:30) [16:00:53:540]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2
MSI (s) (08:30) [16:00:53:540]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2
MSI (s) (08:30) [16:00:53:540]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (s) (08:30) [16:00:53:540]: Restoring environment variables
MSI (c) (D8:20) [16:00:53:541]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (D8:20) [16:00:53:541]: MainEngineThread is returning 1639
=== Verbose logging stopped: 1/28/2014  16:00:53 ===