Until today, all my MOSS2007 installs have been using the simple SQL Express intalls. Today, while trying to install to a dedicated SQL Server 2005 box I kept getting an error when running the configuration wizard. There were a lot of different errors coming up: some about default collation, some about security, but the main error message was:
This access control list is not in canonical form and therefore cannot be modified.
I came across this entry on the Known Issues list for MOSS 2007:
This issue will occur if you are using Sysinternal’s Newsid utility to reset the SID of the machine or image.
To work around this issue do the following:
* Remove the Office Server Beta install.
* Join a workgroup.
* Remove machine account from domain.
* Run sysprep from Windows Support Tool's deploy.cab.
* Reboot and rejoin the domain.
* Install the Office Server Beta.
You can also build the server from scratch and not use NewSID.
Given that I have NewSID installed on all my base VS images to make quick deployment faster, I immediately recognized it as the source of my problem. I did as suggested and ran sysprep from deploy.cab. Deploy cab should be located on your Windows Server 2003 CD under the \SUPPORT\TOOLS folder.
Click on the “Reseal” button:

And select “OK” to regenerate the SIDs:

Make sure you have your install key available, plus your network settings, etc. because it’s going to take you through this part of the Windows install again.
I’ll re-run the setup again this afternoon and report back if it still doesn’t solve the problem.