SCCM 2007 Server Installation error: "Failed to download prerequisite components (0x80072EE2)"

During the installation process on a test Windows 2008 server, which is on a internal IP address, SCCM 2007 wants to download updated versions of some components. This can result in an error message that reads Failed to download prerequisite component.

This results in a message in the log C:\ConfigMgrSetup.log that reads:

<05-22-2012 08:36:05> External files directory is C:\sccmdownload
<05-22-2012 08:36:05> Checking for component updates...
<05-22-2012 08:36:05> Downloading component manifest...
<05-22-2012 08:36:05> Downloading http://go.microsoft.com/fwlink/?LinkId=141733 as ConfigMgr.manifest.cab
<05-22-2012 08:36:07> checking if there's an explicit proxy server.
<05-22-2012 08:36:28> WinHttpSendRequest failed 80072ee2
<05-22-2012 08:36:28> Download() failed with 0x80072EE2
<05-22-2012 08:36:28> Failed to download manifest (0x80072EE2)
<05-22-2012 08:36:43> Failed to download prerequisite components (0x80072EE2)

There is already a winhttp proxy set through netsh, but that doesn't seem to help. Many posts on technet and other search results indicate that running the downloader separately from the installer can help

C:\Microsoft System Center Configuration Manager Server 2007 R3 SP2\SCCM 2007 w SP2\SMSSETUP\BIN\I386>SETUP.EXE /download c:\sccmdownload

But for me, this results in the exact same error message in the log.

The user who is running the SCCM 2007 server installation process needs to set a proxy in IE -> Internet Options -> Connections -> LAN Settings.

The installation process does not respect the system wide proxy set in the winhttp context of netsh. The line in the error log that reads checking if there's an explicit proxy server points in this direction.