Installing MS System Center Operations Manager - error

[Schnippzle]

Hi guys,
When I am trying to install the Operations Manager it constantly bombs out and rolls back the installation. The error I am shown tells me to look in the installation log file for "Value 3", and having done so I find the following:

MSI (s) (3C:EC) [15:55:47:917]: MainEngineThread is returning 1603
MSI (s) (3C:10) [15:55:48:027]: Destroying RemoteAPI object.
MSI (s) (3C:C4) [15:55:48:027]: Custom Action Manager thread ending.
MSI (c) (F8:A0) [15:55:48:042]: Back from server. Return value: 1603
MSI (c) (F8:A0) [15:55:48:042]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (F8:A0) [15:55:48:042]: PROPERTY CHANGE: Deleting SECONDSEQUENCE property. Its current value is '1'.
Action ended 15:55:48: ExecuteAction. Return value 3.
MSI (c) (F8:A0) [15:55:48:042]: Doing action: FatalError
Action 15:55:48: FatalError. 
Action start 15:55:48: FatalError.
Action 15:55:48: FatalError. Dialog created
Action ended 15:55:53: FatalError. Return value 2.
Action ended 15:55:53: INSTALL. Return value 3.

Any help is much appreciated

System is:
VM Windows 2003 R2 32bit standard edition
2GB of RAM
20GB C:\ & 100GB E:\
SQL 2005

E.D.I.T.: Installing it with a local & domain admin account.