We ran across an issue recently where we were installing Microsoft Dynamics AX 2009 SP1 Hotfix Rollup 3 (Just the Kernel components) on Windows Server 2003 R2 SP2 system, and the installation failed with the message “Error during the installation of components” directing us to the Components32_Log.txt log file. In this log file we see the following error message:
Error 1303. The installation has insufficient privileges to access this directory: C:\Documents and Settings\All Users\Start Menu\Programs\Microsoft Dynamics AX 2009. The installation cannot continue. Log on as administrator or contact your system administrator.
After this point we see that the AX Rollup Hotfix installation rollsback removing any previously installed files/components.
The user performing the installation was a member of local Windows Administrators group. However the Windows Installer service user account was being run as a different domain user account. This user account did not have permissions to write to the folder mentioned in the error message (C:\Documents and Settings\All Users\Start Menu\Programs\Microsoft Dynamics AX 2009) and hence why the installation failed to continue.
We resolved the issue by giving the Windows Installer service account user the relevant read/write privileges on the C:\Documents and Settings\All Users\Start Menu\ folder.
NOTE: This was an unusual case. By default the Windows Installer service account is setup to run as the special Windows “Local System” account, however it was modified in this case to run with a user account with lower priviledges.