WSUS 3.0 SP2 installation fails at "configuring database" step

Attempting to install WSUS 3.0 SP2 on a Windows Server 2003 Enterprise system. I'm asking the setup to create a new database on one of our existing SQL Server 2005 systems. When the setup gets to the "configuring database" step it stops and throws "There is a problem with this Windows Installer package. A program run as part of the setup did not finish as expected. Contact your support personnel or package vendor." The two logs it suggests I look at are below. I'm not seeing any errors that mean anything to me.

Any direction you can give will be greatly appreciated.

WSUSSetup.log:

2009-12-04 15:26:21 Success MWUSSetup Validating pre-requisites...
2009-12-04 15:26:22 Error MWUSSetup Failed to determine if an higher version of WSUS is installed. Assuming it is not... (Error 0x80070002: The system cannot find the file specified.)
2009-12-04 15:26:28 Success MWUSSetup No SQL instances found
2009-12-04 15:26:42 Success MWUSSetup Initializing installation details
2009-12-04 15:26:42 Success MWUSSetup Installing ASP.Net
2009-12-04 15:27:24 Success MWUSSetup ASP.Net is installed successfully
2009-12-04 15:27:24 Success MWUSSetup Installing WSUS...
2009-12-04 15:27:28 Success CustomActions.Dll Unable to get INSTALL_LANGUAGE property, calculating it...
2009-12-04 15:27:28 Success CustomActions.Dll Successfully set propery of WSUS admin groups' full names
2009-12-04 15:27:29 Success CustomActions.Dll .Net framework path: C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727
2009-12-04 15:27:33 Success CustomActions.Dll Creating user group: WSUS Reporters with Description: WSUS Administrators who can only run reports on the Windows Server Update Services server.
2009-12-04 15:27:33 Success CustomActions.Dll Creating WSUS Reporters user group
2009-12-04 15:27:33 Success CustomActions.Dll WSUS Reporters user group already exists
2009-12-04 15:27:33 Success CustomActions.Dll Successfully created WSUS Reporters user group
2009-12-04 15:27:33 Success CustomActions.Dll Creating user group: WSUS Administrators with Description: WSUS Administrators can administer the Windows Server Update Services server.
2009-12-04 15:27:33 Success CustomActions.Dll Creating WSUS Administrators user group
2009-12-04 15:27:33 Success CustomActions.Dll WSUS Administrators user group already exists
2009-12-04 15:27:33 Success CustomActions.Dll Successfully created WSUS Administrators user group
2009-12-04 15:27:33 Success CustomActions.Dll Successfully created WSUS user groups
2009-12-04 15:27:33 Success CustomActions.Dll Succesfully set binary SID property
2009-12-04 15:27:33 Success CustomActions.Dll Succesfully set binary SID property
2009-12-04 15:27:33 Success CustomActions.Dll Successfully set binary SID properties
2009-12-04 15:28:50 Error MWUSSetup InstallWsus: MWUS Installation Failed (Error 0x80070643: Fatal error during installation.)
2009-12-04 15:28:50 Error MWUSSetup CInstallDriver::PerformSetup: WSUS installation failed (Error 0x80070643: Fatal error during installation.)
2009-12-04 15:28:50 Error MWUSSetup CSetupDriver::LaunchSetup: Setup failed (Error 0x80070643: Fatal error during installation.)

From the end of WSUSSetupmsi_091204_1527.log

MSI (s) (58:7C) [15:28:49:860]: Note: 1: 1708
MSI (s) (58:7C) [15:28:49:860]: Product: Windows Server Update Services 3.0 SP2 -- Installation failed.

MSI (s) (58:7C) [15:28:49:875]: Cleaning up uninstalled install packages, if any exist
MSI (s) (58:7C) [15:28:49:875]: MainEngineThread is returning 1603
MSI (s) (58:78) [15:28:49:985]: Destroying RemoteAPI object.
MSI (s) (58:90) [15:28:49:985]: Custom Action Manager thread ending.
=== Logging stopped: 12/4/2009 15:28:49 ===
MSI (c) (30:54) [15:28:50:016]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (c) (30:54) [15:28:50:016]: MainEngineThread is returning 1603
=== Verbose logging stopped: 12/4/2009 15:28:50 ===

I've found it's much easier to install WSUS to the Win Internal Database then move the DB to another SQL server. Here's the MS article on moving the DB after the fact. I've done this several times and it works like a charm every time.