I'm having problems installing development machine for Sharepoint (Foundation) 2010. This is what I did so far on the same machine:

1. Installed a clean Windows 7 x64 with 4GB of RAM without being part of any domain. Just a simple standalone machine.
2. Enabled IIS related features as described here except IIS6 related ones (two of them)
3. Installed SQL Server 2008 R2 Development Edition (DB Engine and Writer being enabled but not SQL Agent)
4. Installed Visual Studio 2010 Premium
5. Started installing Sharepoint Foundation 2010 with first extracting files, changing config to enable Windows 7 installation and then installed it as Server Farm (then Complete) to avoid installing SQL Express.
6. Created a separate SPF_CONFIG local user with Logon on as a service right.
7. Opened SPF Management Shell and run New-SPConfigurationDatabase so I am able to use a non-domain username (SPF_CONFIG that I created in the previous step)

But all I get is this:

The outcome after this error is:

• Database Sharepoint2010Config is created
• User SPF_CONFIG is added to SQL Server and attached to this newly created database as dbowner and checking SQL server security logins this user has following rights:
  • dbcreator
  • securityadmin
  • public