I was faced by this issue and wanted to share

While installing SQL 2008 R2 midway through the install I got this

Updating permission setting for folder ‘C:\Program Files\Microsoft SQL Server\100\DTS\’ failed. The folder permission setting were supposed to be set to ‘D:(A;OICI;FA;;;BA)(A;OICI;FA;;;SY)(A;OICI;FA;;;CO)(A;OICI;0x1200a9;;;BU)’.

Looking at this looks like Permission Issue

So first things first I made sure the account I was installing with had the proper rights to do so and that Install was run as an administrator, but none of that was the issue

I re-installed the OS and SQL but still no GO.

Now this has failed at SSIS packages, looking at the below from Microsoft, which explains the necessary permissions for the service accounts


You can see it requires the permission to write to application log

That made me think that since this is a new installation it had to be some policy on the Group Policy, looking at this

which is Under Computer Configuration / Windows Settings / User Rights Assignment / Manage Auditing and Security Log


You can see that only Exchange Servers have the write right to the Event Log

So I added the account I am using to install SQL and Guess what the error was GONE Open-mouthed smile and SQL installed successfully