Error installing SQL Server 2008 r2 on Windows Server 2008 R2 Sp1

I am managing my dedicated server, here's what I did:

Made a fresh install of Windows server 2008 R2 SP1 from the MSDN install ISO. Then added the web server role that turns on IIS.

DONE!

Then I went and installed the latest SQL Server, SQL SERVER 2008 R2 (also from MSDN). First I installed the feature for .NET 3.5.1 then I went and ran the setup of SQL Server.

Almost in the end of the installation i got an error. I clicked Ok and it finished installing but it failed for the database engine.

The weird thing is that I go to SQL Configuration and the SQL Server instance that i created is there and running, but using SQL Managment Studio in the same machine, I can't connect to it.

I tried multiple times with different configuration and it fails always in the end of installing the database instance. I went to the firewall and made sure I created a rule to allow the SQL port.

I don't have the error files but I will put them here later. My guess is that maybe Windows Server 2008 SP isn't supported yet?? Could that be possible?

I experienced a similar problem when trying to install SQL Server 2008 on Windows Server 2008 using an ISO image mounted as a virtual drive. I had to burn the ISO to a DVD in order to get it to work. You may be able to extract the ISO, copy the files to the server, and install them from there.

This issue is discussed more here: http://www.msbicentral.com/Resources/Articles/tabid/88/articleType/ArticleView/articleId/80/FLASH-SQL-Server-2008-R2-Error-Could-Not-Find-Database-Engine-Startup-Handle.aspx