I have seen several posts that are somewhat close the error we are experiencing, but here goes anyway:

We are deploying a VB 6 client app with the latest MSDE. The setup throws an "Unable to configure server" error and backs itself out. This occurs on Windows XP machines (and 1 98 box in our office).

In my testing, I installed a fresh copy of XP Home. I ran my MSDE install and it ran perfectly. We then got a tip that MDAC may be the issue, so I updated the machine to MDAC 2.7 SP1 (XP), and low and behold, I began to receive the same error as the user.

I am reasonable confident that MDAC is the culprit here, but I am not sure yet. And if it is MDAC, I have no clue how repair it on the user's machine.

Does anyone have any experience with this problem? Any wisdom you could share would be much appreciated considering we are starting our second week of debugging and have not made a lot of progress yet.