Active Directory Lightweight Directory Services (AD LDS) server role on Windows Server 2008 must either be enabled or completely removed before installing vCenter Server.
Note: This issue may also occur on 64 bit Windows 2003 Servers. In this case, you must remove the Active Directory Application Mode software.
If AD LDS is installed, but not enabled, it causes the installation to fail because it seeks to use this service and cannot do so.
If the service is completely removed, vCenter Server does not attempt to use the service, and continues with the installation. For more information on Active Directory Lightweight Directory Services, see the Microsoft TechNet article Active Directory Lightweight Directory Services.
Note: The preceding links were correct as of December 3, 2012. If you find a link is broken, provide feedback and a VMware employee will update the link.
In addition, ensure that you have adequate disk space when installing vCenter Server on the system, and making sure not to use any special characters in your password that is connected to the vCenter Server SQL database, as these conditions may cause this error.
Additionally, this issue may also be caused by vCenter Server in Linked Mode and needs to be isolated. For more information, see
Disabling Linked Mode for vCenter Server (1010432).
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