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SQL Server 2012 Install Failure

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I am attempting to install SQL Server 2012 Developer Edition with SP1 as a standalone installation.  This is the downloaded version.  en_sql_server_2012_developer_edition_with_sp1_x64_dvd_1228540

Here is my environment.  Windows 7 X64, SQL Server 2008 R2 Developer Edition,

I've tried to bypass the update step by executing as:  "setup.exe /ACTION=Install /UpdateEnabled=False".  While this did eliminate the two KB downloads, the same error still occurred.

I've extracted the ISO to my local machine and attempted the install according to another thread.  Still no joy.

I installed a hotfix recommended by another thread but still no joy.  System Update Readiness Tool for Windows 7 for x64-based Systems (KB947821) [August 2013]

The Error occurrs in pop-up during Product Updates. 

2 updates found

SQL Server 2012 SP1 GDR Product Update  145MB  KB2793634

SQL Server 2012 SP1 GDR Setup Update  26MB  KB2793634 

ERRORS

TITLE: Microsoft SQL Server 2012 Service Pack 1 Setup
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The following error has occurred:

An error occurred during the installation of assembly 'policy.8.0.Microsoft.VC80.ATL,version="8.0.50727.6229",publicKeyToken="1fc8b3b9a1e18e3b",processorArchitecture="amd64",type="win32-policy"'. Please refer to Help and Support for more information. HRESULT: 0x800736B3.

For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft%20SQL%20Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.3000.0&EvtType=0xDF039760%25401201%25401

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BUTTONS:

OK
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TITLE: Microsoft SQL Server 2012 Service Pack 1 Setup
------------------------------

The following error has occurred:

SQL Server Setup has encountered an error when running a Windows Installer file.

Windows Installer error message: An error occurred during the installation of assembly 'policy.8.0.Microsoft.VC80.ATL,version="8.0.50727.6229",publicKeyToken="1fc8b3b9a1e18e3b",processorArchitecture="amd64",type="win32-policy"'. Please refer to Help and Support for more information. HRESULT: 0x800736B3.
Windows Installer file: C:\Users\jhadden\AppData\Local\Temp\SQL Server 2012\Setup\1033_ENU_LP\x64\setup\sqlsupport_msi\SqlSupport.msi
Windows Installer log file: C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20131010_091212\SqlSupport_Cpu64_1_ComponentUpdate.log

Click 'Retry' to retry the failed action, or click 'Cancel' to cancel this action and continue setup.

For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft%20SQL%20Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.3000.0&EvtType=0xDC80C325

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BUTTONS:

&Retry
Cancel
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