If you cannot install SQL Server 2008 because of the known issue in the Setup program, you will have to use the slipstream method to successfully complete an installation of SQL Server. This method involves downloading the service pack package that you want for your architecture and combining that with the original SQL Server 2008 install media.
The first thing that you want to do is to download the service pack that you wish to slipstream with your SQL Server 2008 install. Once you download the service pack, you will need to extract the service pack by opening command prompt, navigate to the directory that you saved the service pack to, and run the following command. In this example, I downloaded SP1 and I am extracting that file to a directory that will be named “SP1” on the C: drive.
After the files have finished extracting, you will have to install the setup files on the server. There are 2 methods to accomplish this. I prefer the latter method since I already have command prompt open.
Run the service pack to install setup files on the computer. You will receive a Setup Support Files dialog box if the setup support files have not been installed.
You can also run the following file to install the setup support files:
Once the setup files have been installed on the server, we can finally start the installation of SQL Server 2008 with SP1. While still in command prompt, navigate to the original setup.exe executable and specify the PCUSource directory where we extracted SP1 earlier.
Your SQL Server 2008 install should now complete successfully with SP1 already installed with it.
Thanks for reading!