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Error 1920 / Service failed to start during client install


I have two clients running Windows 2008 Standard which refuse to have the Networker client installed on them. The problem is that at the very end of the install nsrexecd fails to start with the error:


Error 1920. Service nsrexecd failed to start. Verify you have sufficient privileges to start system services.


After this I have to cancel and the install is rolled back.


The service is using the local system account, and I am using domain admin account for the installation. The available articles suggest to attempt install to a different disk/location, but it did not help. Same thing happens for 8.0.1 and 7.6.5 install. Server has already been rebooted.


Any tips where to look next?



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