Installing SQL Server 2008 on Windows 7 64-bit
Best answer: Install SQL Server 2008 R2.
I tried all of these solutions and they all failed. R2 installed perfectly, the first time.
Maybe the problem is that the installation is only supported for SQL Server 2008 SP1 on Windows 7
Windows 7 64-bit x64 Professional (1,3)
1) Management Tools are supported in WOW64, a feature of 64-bit editions of Microsoft Windows that enables 32-bit applications to execute natively in 32-bit mode. Applications function in 32-bit mode even though the underlying operating system is running on the 64-bit operating system. WOW64 is supported only for stand-alone instances of SQL Server. WOW64 is not supported for SQL Server failover cluster installations.
3) Supported only on SQL Server SP1 or higher.
See http://msdn.microsoft.com/en-us/library/ms143506.aspx
Maybe you can cheat SQL Server by installing SQL 2008 express first, applying the SP1 and upgrading the instance to a full edition or do a slipstream installation file:
http://blogs.msdn.com/petersad/archive/2009/02/25/sql-server-2008-creating-a-merged-slisptream-drop.aspx
Update: I found this link http://connect.microsoft.com/SQLServer/feedback/ViewFeedback.aspx?FeedbackID=354980 with a solution in the comment section. They say that Windows Installer 4.5 must be installed which can be found here: http://www.microsoft.com/downloads/details.aspx?FamilyId=5A58B56F-60B6-4412-95B9-54D056D6F9F4&displaylang=en#filelist