I just tried installing SQL Server 2008 R2 in a VirtualPC environment. This caused an error, redownloading the .iso image from MSDN did not help. I Binged it and found Bob Beauchmin had the same problem. Apparently the .iso reader in VirtualPC causes the problem.
More here: http://www.sqlskills.com/BLOGS/BOBB/post/Getting-error-2337-installing-SQL-Server-on-a-VPC.aspx
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