When installing SQL Server 2008 R2 (Developer, Standard, or Enterprise) within a Virtual PC you may suffer the following problem:
“The following error has occurred: The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2337.”
The error occurs in the following package: sql_engine_core_shared
It turns out that this problem is with the DVD/ISO Mounting Feature in Windows Virtual PC. To workaround the problem you need to expand the ISO with WinRAR – not WinZip and not by copying the contents of the mounted ISO to the VPC’s hard drive. You need to use WinRAR to extract the ISO; extracting the contents of the ISO with anything else just won’t solve the problem.
Microsoft have acknowledged the problem here:
WinRAR can be found here: