Install_Msxml6_Cpu32_Action failed when installing SQL Server 2008

One of my friends was trying to setup a TFS 2010 environment, which requires SQL Server 2008 or above versions. We came across a SQL Server 2008 RTM bug, so I’m posting its description here so that other folks can work around it too.

Symptoms The installation wizard of SQL Server 2008 fails at the point of starting the SQL Server browser service. In the detailed installation log of SQL Server, which locates in %ProgramFiles%\Microsoft SQL Server\100\Setup Bootstrap\LOG\, there are error messages like the following. See How to: View SQL Server Setup Log Files for more information about log location. 2009-07-01 16:19:19 Slp: Checkpoint: INSTALL_MSXML6_CPU32_ACTION 2009-07-01 16:19:19 Slp: Completed Action: Install_Msxml6_Cpu32_Action, returned False 2009-07-01 16:19:19 Slp: Error: Action "Install_Msxml6_Cpu32_Action" failed during execution. 2009-07-01 16:19:19 Slp: Action "Install_sql_engine_core_shared_Cpu32_Action" will return false due to the following conditions: Cause This is a SQL Server 2008 RTM installation bug. The installation wizard has a conflict with MSXML6 SP2 (KB954459). Workaround Remove KB954459 Uninstall SQL Server 2008. Reboot  the computer. Install SQL Server 2008.