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SQL Server 2008/2012 error when installing on Server 2012

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I am trying to install SQL Server 2008 (ideally) on windows server 2012. I have installed Framework 3.5 on the system. I choose "NT AUTHORITY\SYSTEM" as recommended for starting/running the database engine. The installation keeps failing with an error.

The following error has occurred:

Wait on the Database Engine recovery handle failed. Check the SQL Server error log for potential causes.

I have tried installing SQL Server 2012 on the same system and I still get the same error. I have uninstalled and restarted the system a couple of times already.

Any help on how to get this issue resolved?

Thanks


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