Registry Keys error when installing SQL Server 2008 R2

I am writing this post because for some reason, nobody seems to have written this particular situation. That's a bit surprised because it involves an extensively used 3rd party software package.

My problem was caused by another non-standard instance of SQL that was installed as part of my ACT! contact mgmt system. It took about 3 days of reading and trial-error to figure it out.

Need to open Control Panel, Admionstrator Tool, Services. Then go through and STOP EVERY SERVICE that refers to SQL. My first one, MSSQL$ACT7, seemed to stop all of them since there were never any other SQL services running on this machine.

i eventually found the answer to my own problem in this thread:

http://social.msdn.microsoft.com/Forums/en-US/sqlsetupandupgrade/thread/fdb33ba1-a67a-4cd7-bccb-90ac07a43e1c

Steps

    1. Located HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SQL Server in registry
    2. Right click and go to Permission
    3. Click on Advance
    4. Tick on both check box (I. Inherit from parent the permission... II. Replace permission entries on all child objects...), click OK
    5. Click OK again