I'm testing failover clustering in Windows Server 2008 to host a SQL Server 2008 installation using this installation guide. My base cluster is installed and working properly, as well as clustering the DTC service. However, when it comes time to install SQL Server, my first attempt at installation always fails with the same message and seems to "taint" the network name.

For example, with my previous cluster attempt, I was installing SQL Server as VSQL. After approximately 15 attempts of installation and trying to resolve the errors, e.g. changing domain accounts for SQL, setting SPNs, etc., I typoed the network name as VQSL and the installation worked. Similarly on my current cluster, I tried installing with the SQL service named PROD-C1-DB and got the same errors as last time until I tried changing the name to anything else, e.g. PROD-C1-DB1, SQL, TEST, etc., at which point the install works. It will even install to VSQL now.

While testing, my install routine was:

1. Run setup.exe from patched media, selecting appropriate options
2. After the install fails, I'd chose "Remove node from a SQL Server failover cluster" and remove the single, failed, node
3. Attempt to diagnose problem, inspect event logs, etc.
4. Delete the computer account that was created for the SQL Service from Active Directory
5. Delete the MSSQL10.MSSQLSERVER folder from the shared data drive

The error message I receive from the SQL Server installer is:

The following error has occurred: The cluster resource 'SQL Server' could not be brought online. Error: The group or resource is not in the correct state to perform the requested operation. (Exception from HRESULT: 0x8007139F)

Along with hundreds of the following errors in the Application event log:

[sqsrvres] checkODBCConnectError: sqlstate = 28000; native error = 4818; message = [Microsoft][SQL Server Native Client 10.0][SQL Server]Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON'.

System configuration notes:

• Windows Server 2008 Enterprise Edition x64
• SQL Server 2008 Enterprise Edition x64 using slipstreamed SP1+CU1 media
• Dell PowerEdge servers
• Fibre attached storage