Another engineer and I are troubleshooting this exact error at one of our clients. The install is brand new on a clean Windows 2008 R2 VM using vCenter 5.1 Update 1a. We’re using an existing, remote SQL 2008 R2 database server and ran the supplied scripts to prepare the SSO users and database.
If I point the install at a completely different SQL 2008 R2 database server that also has had the supplied scripts ran on it the install works perfectly.
This makes me think there is something unusual about the first SQL server we were using. We had the DBA reboot the SQL server and tried the install again with the same error. This SQL server has the latest service pack and Windows Updates installed and hosts many other databases without any problems.
We’ve opened a case with VMware Support and it has been escalated to development.
We've also tried the install with different AD accounts - local admin, domain admin - and receive the same error.