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Got this error when trying to install a new instance of SQL 2005 Standard on Windows Server 2003 R2:

SQL Server Setup failed to modify security permissions on registry key SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.X\MSSQLServer\SuperSocketNetLib for user Username. To proceed, verify that the account and domain running SQL Server Setup exist, that the account running SQL Server Setup has administrator privileges, and that the registry key  exists on the destination drive.

I looked in the registry, and the administrators group has full control over this key.

Digging into the SQLSETUP log file, at the end I see:
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Configuring ACL:
Object: HKLM\SOFTWARE\Microsoft\Microsoft SQL Server\MSSQL.2\MSSQLServer\SuperSocketNetLib
ACL:    (A;CI;KR;;;[SQLServer2005SQLBrowserUser$NEWSERVER])(A;CI;KR;;;NS)
Action:  0×100
Failed ACL:
ReplaceSDDLSid is failed at the error code 1332; Converted SDDL: ‘(A;CI;KR;;;[SQLServer2005SQLBrowserUser$NEWSERVER])(A;CI;KR;;;NS)’
Error Code: 0×80077344 (29508)
Windows Error Text:   Source File Name: sqlca\sqlsddlca.cpp
Compiler Timestamp: Tue Sep 13 01:08:29 2005
Function Name: ExceptionInSDDL
Source Line Number: 65

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Looking into AD Users+Computers, there is not a group present for SQLServer2005SQLBrowserUser$NEWSERVER but there is one for SQLServer2005SQLBrowserUser$OLDSERVER.

It appears that the install did not create the new group that was necessary..

Create the Domain Local Security Group in Active Directory Users and Computers and the installation will complete successfully.

I found the answer at the following link:

http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=2978185&SiteID=1