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Is it possible to install sql server on a windows xp machine where the user profiles are created on a non system root directory, that is, on D drive rather than C drive?

I am trying to install SQL server 2008 R2.

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Why are you asking? Did you try it and it failed? – Jon Seigel Sep 25 '12 at 14:36
Yes, it is failing. I am not sure if this could be the reason for the installation to fail. – PassionateAboutLife Sep 25 '12 at 15:56
Please edit the question to include the error message, error codes, etc. – Jon Seigel Sep 25 '12 at 16:10
The error code is 15209, error during encryption. But, I want to know will Sql server installation fail if the Network service account is on D drive instead of C drive. – PassionateAboutLife Sep 25 '12 at 18:46
It shouldn't fail. Based on the error message, the failure is probably due to something completely different. – Jon Seigel Sep 25 '12 at 22:07

This Microsoft support document might be of some help in regards to that particular error:

The Network Service account does not have permissions on the following folder:

C:\Documents and Settings\NetworkService\Application Data\Microsoft\Protect

It might need permission to that particular directory on your D Drive

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