MS SQL Express Error 25057

When I load the VMware-VIMSetup-2.5.0-64201 VCServer setup, I get this error and install bails out.

I am not using a license server, and not using an existing db, I am installing a new instance of sql express.

Google search not helpful. New first time install in lab.

!C:=C:\Documents and Settings\

!EXITCODE=00000001

ALLUSERSPROFILE=C:\Documents and Settings\All Users

APPDATA=C:\Documents and Settings
Application Data

BF_HOME=C:\Program Files\BladeFusion Technologies\IPX-1 Demo\

CLIENTNAME=DAVEL-T60P

COMMONPROGRAMFILES=C:\Program Files\Common Files

COMPUTERNAME=TECHMKG1

COMSPEC=C:\WINDOWS\system32\cmd.exe

HOMEDRIVE=C:

HOMEPATH=\Documents and Settings\

LOGONSERVER=
APOC

NUMBER_OF_PROCESSORS=4

OS=Windows_NT

PATH=/cygdrive/c/WINDOWS/system32:/cygdrive/c/WINDOWS:/cygdrive/c/WINDOWS/System

32/Wbem:/cygdrive/c/WINDOWS/postgres/bin:/cygdrive/c/Program Files/BladeFusion T

echnologies/IPX-1 Demo/:/usr/bin:/cygdrive/c/Program Files/Microsoft SQL Server/

80/Tools/BINN:/cygdrive/c/Program Files/Bitvise Tunnelier:/cygdrive/c/Expect-5.2

1/bin:/cygdrive/c/Python24:/cygdrive/c/gnuplot/bin:/cygdrive/c/Program Files/Per

force

PATHEXT=.COM;.EXE;.BAT;.CMD;.VBS;.VBE;.JS;.JSE;.WSF;.WSH

PGDATA=C:\WINDOWS\postgres\data

PGHOME=C:\WINDOWS\postgres

PGHOST=localhost

PGLIB=C:\WINDOWS\postgres\lib

PROCESSOR_ARCHITECTURE=x86

PROCESSOR_IDENTIFIER=x86 Family 15 Model 4 Stepping 3, GenuineIntel

PROCESSOR_LEVEL=15

PROCESSOR_REVISION=0403

PROGRAMFILES=C:\Program Files

PROMPT=$P$G

SESSIONNAME=RDP-Tcp#106

SYSTEMDRIVE=C:

SYSTEMROOT=C:\WINDOWS

TEMP=/cygdrive/c/DOCUME_1//LOCALS1/Temp

TMP=/cygdrive/c/DOCUME_1//LOCALS1/Temp

USERDNSDOMAIN=MATRIX.LAB

USERDOMAIN=MATRIX

USERNAME=enguser

USERPROFILE=C:\Documents and Settings\

WINDIR=C:\WINDOWS

TERM=cygwin

HOME=/cygdrive/c/Documents and Settings/

C:\Documents and Settings\>