I received the following error (in a dialog box) from Windows Setup on a Terminal Server running Windows Server 2003 not long after GUI-mode setup started:
An error has been encountered that prevents Setup from continuing.
Setup failed to install the product catalogs. This is a fatal error. The setup log files should contain more information.
Press OK to view the Setup log file.
Unfortunately the Setup log file wasn’t much help. The actual cause of the error was related to the particular configuration of Windows. These servers utilise two RAID 1 disk sets and I am using an unattended setup to configure Windows to store user profiles (\Documents and Settings) on the second disk set (seperate from the System partition). To do this I need to launch Windows Setup from WINNT32.EXE via a Windows PE environment and just before this happens the disk partitions are created and formatted via a DISKPART script. For whatever reason, the second disk set is occasionally not formatted, so when Windows Setup gets to GUI-mode it can’t create the folder for user profiles and fail with the above error.