Terminal Services License Server Install Failed on Server 2008 SP2 DC

I am trying to install Terminal Services License Server on a 2008 Server Standard DC. The only roles installed on this machine are Active Directory and DNS.

I went thru the Wizard and selected to install TS License Server ONLY (no need to install Terminal Services on this DC) and it did the whole install process only to fail at the end.

This thread here http://social.technet.microsoft.com/Forums/en-US/winserverTS/thread/1cf16372-79b8-436c-acc0-1bd0b11ea37c indicates demoting, installing Term Svc LS worked, but I'd rather not do that.

The last bits of the log state:

1148: 2009-09-25 15:57:34.082 [CbsUIHandler]              Error: -2147021879 : 
1148: 2009-09-25 15:57:34.097 [CbsUIHandler]              Terminate: 
1148: 2009-09-25 15:57:34.097 [CBS] Error (Id=0) Function: 'NativeMethods.GetPackageStatus(out status)' failed: 80070bc9 (-2147021879)
1148: 2009-09-25 15:57:34.097 [CBS]                       ...done installing 'Licensing-UI Licensing '. Status: -2147021879 (80070bc9)
1148: 2009-09-25 15:57:34.253 [TS]                        Skipped configuration of 'TerminalServicesLicenseServer' because install operation failed.
1148: 2009-09-25 15:57:34.253 [Provider]                  
[STAT] ---- CBS Session Consolidation -----
[STAT] For 
          'TerminalServicesLicenseServer'[STAT] installation(s) took '202.8734434' second(s) total.
[STAT] Configuration(s) took '0.0004573' second(s) total.
[STAT] Total time: '202.8739007' second(s).

1148: 2009-09-25 15:57:34.269 [Provider] Error (Id=0) Sync Result - Success: False, RebootRequired: True, Id: /RMTInstances/http___schemas.microsoft.com_sdm_Windows_ServerManager_TerminalServer_2005_09_TerminalServicesLicenseServerType_d367e9aa-72be-45b9-84fb-ed3516900e93.xml
1148: 2009-09-25 15:57:34.269 [Provider] Error (Id=0) Sync Message - OperationKind: Install, MessageType: Error, MessageCode: -2147021879, Message: <null>, AdditionalMessage: The requested operation failed. A system reboot is required to roll back changes made
1148: 2009-09-25 15:57:35.738 [InstallationProgressPage]  Sync operation completed
1148: 2009-09-25 15:57:35.785 [InstallationProgressPage]  Performing post install/uninstall discovery...
1148: 2009-09-25 15:57:36.613 [CBS]                       LastModified CBS Time (UTC): 09/25/2009 19:57:25
1148: 2009-09-25 15:57:36.613 [Provider]                  C:\Windows\system32\ServerManager\Cache\CbsUpdateState.bin does not exist.
1148: 2009-09-25 15:57:36.613 [CBS]                       IsCacheStillGood: False.
1148: 2009-09-25 15:57:36.628 [CBS]                       CreateSessionAndPackage: begin
1148: 2009-09-25 15:57:44.129 [CBS]                       CreateSessionAndPackage: done
1148: 2009-09-25 15:57:44.129 [CBS]                       >>>GetUpdateInfo--------------------------------------------------
1148: 2009-09-25 15:58:00.879 [CBS] Error (Id=0) Function: 'ReadUpdateInfo()->Package_EnumerateUpdates' failed: 80070bc9 (-2147021879)
1148: 2009-09-25 15:58:00.879 [CBS]                       <<<GetUpdateInfo--------------------------------------------------
1148: 2009-09-25 15:58:00.988 [DISCOVERY]                 hr: -2147021879 -> reboot required.
1148: 2009-09-25 15:58:01.160 [InstallationProgressPage]  About to load finish page...
1148: 2009-09-25 15:58:01.223 [InstallationFinishPage]    Loading finish page
1148: 2009-09-25 15:58:01.504 [InstallationFinishPage]    Finish page loaded

edit: Per FarSeeker added the event log failures. There are a bunch, literally thousands of errors in the System log. Nothing looks particularly illuminating to me other than clearly something is incredibly broken. :D

First it starts with Event ID 4371 "Info" level events:

Windows Servicing started a process of changing package Windows Foundation(Foundation) state from Installed(Installed) to Installed(Installed) - Microsoft-Windows-Foundation-Package~31bf3856ad364e35~amd64~~6.0.6001.18000

Windows Servicing started a process of changing package Server-Features(Feature Pack) state from Installed(Installed) to Installed(Installed) - Microsoft-Windows-Server-Features-Package~31bf3856ad364e35~amd64~~6.0.6001.18000

Windows Servicing started a process of changing package BitLocker(Feature Pack) state from Installed(Installed) to Installed(Installed)

Windows Servicing started a process of changing package KB948465(Service Pack) state from Installed(Installed) to Installed(Installed) - Package_221_for_KB948465~31bf3856ad364e35~amd64~~6.0.1.1800

-- process continues for basically every service pack / update on the system, several hundred --

Then:

The start type of the Windows Modules Installer service was changed from demand start to auto start. 7040

Then a few dozen of these:

Windows Servicing is setting package KB955302(Update) state to Installed(Installed) 4372

Finally the magic:

The Terminal Services Licensing service entered the running state. 7036

The description for Event ID 18 from source Microsoft-Windows-TerminalServices-Licensing cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

If the event originated on another computer, the display information had to be saved with the event.

The following information was included with the event:

XXXXXX (name of the server)

The description for Event ID 0 from source Microsoft-Windows-TerminalServices-Licensing cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

If the event originated on another computer, the display information had to be saved with the event.

The following information was included with the event:

(blank)

Then all the Servicing items from before fail: Windows Servicing failed to complete the process of setting package Windows Foundation (Foundation) into Installed(Installed) Microsoft-Windows-Foundation-Package~31bf3856ad364e35~amd64~~6.0.6001.18000 Operation: Installed OpCompleted: True ErrorCode: 0x80070bc9 state 4375

Windows Servicing failed to complete the process of setting package Server-Features (Feature Pack) into Installed(Installed) state

Finally, looking in the application log I have only a few (maybe 10 or so) failures, instead of the several thousand in the setup log:

Fault bucket 552641751, type 5
Event Name: CbsPackageServicingFailure
Response: None
Cab Id: 0

Problem signature:
P1: 6.0.6002.18005
P2: Microsoft-Windows-Foundation-Package~31bf3856ad364e35~amd64~~6.0.6001.18000
P3: 80070bc9
P4: Execute
P5: Installed
P6: Installed
P7: 
P8: 
P9: 
P10: 

Attached files:
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\CBS.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\cbs.persist.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\poqexec.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\pending.xml
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\setupapi.dev.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report5438a66c\windowsupdate.log

These files may be available here:
C:\ProgramData\Microsoft\Windows\WER\ReportArchive\Report5fc87216

Fault bucket 582891150, type 5
Event Name: WindowsWcpAIFailure3
Response: None
Cab Id: 0

Problem signature:
P1: 6.0.6002
P2: Group Trustee
P3: 38
P4: Install (first install)
P5: d0000065
P6: amd64_microsoft-windows-t..vices-licenseserver_31bf3856ad364e35_none_9f63f02ef67d0811
P7: Servicing
P8: unknown
P9: NormalBoot
P10: 

Attached files:
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\pending.xml
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\poqexec.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\CBS.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\Cbs.persist.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\SCM.EVM
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\FilterList.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\WER2768.tmp.hdmp
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report558c4a90\WER490A.tmp.mdmp

These files may be available here:

Fault bucket 616121109, type 5
Event Name: WindowsWcpOtherFailure3
Response: None
Cab Id: 0

Problem signature:
P1: 6.0.6002
P2: base\wcp\cmiadapter\installers.cpp
P3: Windows::WCP::CmiAdapter::CMIWrapperBasicInstaller::Install
P4: 123
P5: d0000065
P6: 0x3b37514a
P7: 
P8: 
P9: 
P10: 

Attached files:
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\pending.xml
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\poqexec.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\CBS.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\Cbs.persist.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\SCM.EVM
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\FilterList.log
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\WERC032.tmp.hdmp
C:\ProgramData\Microsoft\Windows\WER\ReportQueue\Report588fe0ca\WERDC37.tmp.mdmp

These files may be available here:

This is a very generic MS Error Code. The relevant part of your log file is the first two lines.

Most of the time it would appear that this is caused by a service that the role relies on not being detected correctly, and requires a lot more information than what you've got there.

If you check in the Event Log, do you see a related failure in there? If you can find it, can you update your post with the failure(s) so that we can have a look?

Update:

Hmm, sorry, I'm all out of ideas. Those event codes are no help (Event 0 = started, Event 18 = TS Licensing Server Not Activated - both pretty normal).

ErrorCode: 0x80070bc9 doesn't have a specific generic meaning, although it commonly seems to mean "Restart Required from Previous Update". I'm guessing that's not its meaning in this situation though (I assume you've already restarted).