During the GUI portion of Setup, for each file that Setup cannot copy, you receive:

Setup cannot copy the file <FileName>

The following files are probably referenced:

<b>Cmprops.dl_
Licwmi.dl_
Mmfutil.dl_
Servereps.dl_</b>
If you view the %SystemRoot%\Security\Scesetup.log file, it may contain any of the following errors:
<b>Error 1208: An extended error has occurred.
Error opening %SystemRoot%\Security\Database\secedit.sdb.

Error 1208: An extended error has occurred.
Errors occurred.

Error 1208: An extended error has occurred.
Error creating database.</b>
These problems are symptomatic of a corrupted security database ( %SystemRoot%\security\database\Secedit.sdb), which can be caused by an improper shutdown (power failure, pressing the power button without first shutting down, or hardware failure).

To resolve this problem:

1. Press Start and Run.

2. Type esentutl /p %SystemRoot%\security\database\secedit.sdb into the Open box and press OK or Enter.

3. Press Start and Run.

4. Type %SystemRoot%\security into the Open box and press OK or Enter.

5. Right-click the Edb.log file and press Delete. Press OK when prompted to confirm the deletion.

6. Right-click the Edb0000x.log file, where x is any character, and press Delete. Press OK when prompted to confirm the deletion.

7. Shutdown and perform the in-place upgrade again.

NOTE: If you can't delete these log files, perform the deletions from the Recovery Console.

NOTE: As a result of the corruption, cached local security policy settings may be lost.