Question : Exchange 2007 New Install error

I recently built a new server for the zoo, all very good quality stuff, and have installed Win Server 2003 x64.  I've set up all the basic server roles, ran EVERY available update, both for hardware and the OS, and am trying to install Exchange 2007.  During the initial setup routine, it told me what I still needed to add or tweak, using the GUI tool, and it told me I needed to download and install the .NET 2 service pack (already had 2 & 3 on the system, but there was one more update).  So, I ran MS Update, which still said I had all the latest updates, with 0 new updates available.  Setup still said I needed to install the KB update, so I followed the link, downloaded and installed the update.  

The update requires a system restart meaning I have to close out of the setup process, but after restarting, setup will not continue (catch-22).  The initial menu page comes up, showing steps 1-3 complete, step 4 being the actual installation of Exchange.  When I click on it, I get "Exchange Server setup encountered an error".  No log file is generated.  Nothing registers in any of the event viewers except for a note by the system viewer stating that windows installer entered the stop state.

If I uninstall .NET, and reinstall it, without installing the KB update that Exchange setup insists I need, I can open setup and get all the way to it's system testing phase, when it tells me I must install the KB that blows it up.  And around we go.

I can't find an answer on any of the usual MS reference sites/forums, so I'm hoping some of the folks around here will have some ideas.

Answer : Exchange 2007 New Install error

Ok, I found the secret to getting past this silly mess, but it still leaves one problem that doesn't seem to be too big a deal.  First the left over problem - If the latest .NET 2 update is installed, it causes the RAID driver to fall on it's face.  The RAID still works from the hardware level, so the only thing I've lost is a GUI control interface that I'll likely never use anyway, so I'll work on it when time allows.

Now for the oddball fix...

Install all the updates, including the offending party, KB926776, and keep a copy of KB926776 on hand.  Reboot.  Go to Add/Remove Programs and uninstall the .NET 2 update (KB926776).  Start Exchange 2007 setup.  Go through to the point where it runs the check on the system and returns the warning(s) that you must install KB926776.  Minimize Exchange 2007 setup.  Install KB926776, but don't restart when prompted.  Go back to Exchange 2007 setup and tell the test wizard section to retry.  It will complete.  Now, finish setup.  When done, run updates.  Then, reboot.