Solution Manager Installation Error "SAP SOLUTION MANAGER 7.0 EHP 1"

I am new to SAP and currently trying to install SOLMAN 7.0 EHP 1 on Windows Server 2008 R2. I have read the documentation also. For JDK I have used "j2sdkfb-1_4_2_24-rev-b06-windows-amd64.exe" which looks to be working fine.
The installation process runs fine until it hits "Start Instance" the message on the bottom says "Starting instance xxx/DVEBMGSOO" (where xxx is my sid) and then its times out after 10 minute. After timing out I get the following error on the window.
An error occurred while processing option SAP Solution Manager 7.0 EhP1 > SAP Systems > Oracle > Central System > Central System( Last error reported by the step: ABAP processes of instance ORC/DVEBMGS00 ABAP: UNKNOWN did not start after 10:00 minutes. Giving up.). You can now:
Choose Retry to repeat the current step.
Choose Log Files to get more information about the error.
Stop the option and continue with it later.
Log files are written to C:\Program Files/sapinst_instdir/SOLMAN/SYSTEM/ORA/CENTRAL/AS.
Though the installation steps are not fully completed but I do see SAP management Console and when I open it I see two process running "msg_server.exe" & "igswd.exe" The process dispwork.EXE starts in the beginning and then stops and stays stopped. I tried restarting all the process again but only tow of them starts and the process "dispwork.EXE" starts but then stops again. I also did a NEW installation considering a file could have been corrupted or something else but the installation process stops and the same place. I am sure ppl have installed SOLMAN on windows 2008 R2 and this error seems common to me. Please assist. Any tips would be nice.
Edited by: amirsd on Aug 3, 2011 5:53 PM

Hi,
Please check the below
1) ip/host entries should be in /etc/hosts
2) patch the latest kernel for 2008 R2
and re run installation
Regards,
Ram

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 at Microsoft.Reporting.Setup.ReportingManagedCAs.ConfigureOverridesForDWRules(Session session)
 --- End of inner exception stack trace ---
 at System.RuntimeMethodHandle._InvokeMethodFast(Object target, Object arguments, SignatureStruct& sig, MethodAttributes methodAttributes, RuntimeTypeHandle typeOwner)
 at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object parameters, CultureInfo culture, Boolean skipVisibilityChecks)
 at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object parameters, CultureInfo culture)
 at Microsoft.WindowsInstaller.CustomActionProxy.InvokeCustomAction(Int32 sessionHandle, String entryPoint)
CustomAction _ConfigureOverridesForDWRules.9B663534_CD9B_41CC_9D93_4E84D3C5E165 returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)
MSI (s) (38:4C) [08:11:56:281]: NOTE: custom action _ConfigureOverridesForDWRules.9B663534_CD9B_41CC_9D93_4E84D3C5E165 unexpectedly closed the hInstall handle (type MSIHANDLE) provided to it. The custom action should be fixed to not close that handle.
Action ended 8:11:56: InstallFinalize. Return value 3.
MSI (s) (38:6C) [08:11:56:359]: User policy value 'DisableRollback' is 0
MSI (s) (38:6C) [08:11:56:359]: Machine policy value 'DisableRollback' is 0
MSI (s) (38:6C) [08:11:56:624]: Executing op: Header(Signature=1397708873,Version=500,Timestamp=1133657144,LangId=1033,Platform=589824,ScriptType=2,ScriptMajorVersion=21,ScriptMinorVersion=4,ScriptAttributes=1)

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