I've tried everything to upgrade our current SQL Server 2008 box to R2. No errors but as soon as the upgrade is done it says failed with red X's on the engine and all other parts of sql. Then it tells me to look at a log file. In the log file it says:

Log with failure: C:\Program Files\Microsoft SQL Server\100\Setup Bootstrap\Log\20111117_123422\sql_engine_core_inst_Cpu64_1.log
Exception help link:
http://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=10.50.2500.0

So if I look at the exception help link it says this:

Details 
Product: SQL Server 
ID: 50000 
Source: setup.rll 
Version: 10.0 
Component: SQL Server Native Client 
Message: A network error occurred while attempting to read from the file '%.*ls'. 

Explanation 
An attempt was made to install (or update) SQL Server Native Client on a computer where SQL Server Native Client is already installed, and where the existing installation was from an MSI file that was not named sqlncli.msi.


User Action 
To resolve this error, uninstall the existing version of SQL Server Native Client. To prevent this error, do not install SQL Server Native Client from an MSI file that is not named sqlncli.msi. 

So I tried uninstalling native client and reinstalling same issue. If I look at the actual log file that "has the failure" I dont see any failure in it:

=== Verbose logging started: 11/17/2011 12:44:20 Build type: SHIP UNICODE 4.05.6002.00 Calling process: C:\Program Files\Microsoft SQL Server\100\Setup Bootstrap\SQLServer2008R2\x64\setup100.exe === MSI (c) (EC:8C) [12:44:20:033]: Resetting cached policy values MSI (c) (EC:8C) [12:44:20:033]: Machine policy value 'Debug' is 0 MSI (c) (EC:8C) [12:44:20:033]: * RunEngine: * Product: \shadow\cis\Software\SQL Server\SQL Server 2008 Enterprise Edition R2\x64\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi * Action: * CommandLine: **** MSI (c) (EC:8C) [12:44:20:034]: Client-side and UI is none or basic: Running entire install on the server. MSI (c) (EC:8C) [12:44:20:034]: Grabbed execution mutex. MSI (c) (EC:8C) [12:44:20:036]: Cloaking enabled. MSI (c) (EC:8C) [12:44:20:036]: Attempting to enable all disabled privileges before calling Install on Server MSI (c) (EC:8C) [12:44:20:036]: Incrementing counter to disable shutdown. Counter after increment: 0 MSI (s) (24:38) [12:44:20:046]: Running installation inside multi-package transaction \shadow\cis\Software\SQL Server\SQL Server 2008 Enterprise Edition R2\x64\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi MSI (s) (24:38) [12:44:20:046]: Grabbed execution mutex. MSI (s) (24:E4) [12:44:20:048]: Resetting cached policy values MSI (s) (24:E4) [12:44:20:048]: Machine policy value 'Debug' is 0 MSI (s) (24:E4) [12:44:20:048]: * RunEngine: * Product: \shadow\cis\Software\SQL Server\SQL Server 2008 Enterprise Edition R2\x64\setup\sql_engine_core_inst_msi\sql_engine_core_inst.msi * Action: * CommandLine: **** MSI (s) (24:E4) [12:44:20:052]: Incrementing counter to disable shutdown. Counter after increment: 0 MSI (s) (24:E4) [12:44:20:052]: Machine policy value 'TransformsSecure' is 1 MSI (s) (24:E4) [12:44:20:053]: Machine policy value 'DisableUserInstalls' is 0 MSI (s) (24:E4) [12:44:20:053]: Specified instance {9FFAE13C-6160-4DD0-A67A-DAC5994F81BD} via transform :InstID02.mst;:InstName01.mst is already installed. MSINEWINSTANCE requires a new instance that is not installed. MSI (s) (24:E4) [12:44:20:053]: Decrementing counter to disable shutdown. If counter

= 0, shutdown will be denied. Counter after decrement: -1 MSI (s) (24:E4) [12:44:20:054]: MainEngineThread is returning 1639 MSI (s) (24:38) [12:44:20:058]: User policy value 'DisableRollback' is 0 MSI (s) (24:38) [12:44:20:058]: Machine policy value 'DisableRollback' is 0 MSI (s) (24:38) [12:44:20:058]: Incrementing counter to disable shutdown. Counter after increment: 0 MSI (s) (24:38) [12:44:20:058]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2 MSI (s) (24:38) [12:44:20:059]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2 MSI (s) (24:38) [12:44:20:059]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2 MSI (s) (24:38) [12:44:20:059]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2 MSI (s) (24:38) [12:44:20:059]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1 MSI (s) (24:38) [12:44:20:060]: Restoring environment variables MSI (c) (EC:8C) [12:44:20:065]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1 MSI (c) (EC:8C) [12:44:20:066]: MainEngineThread is returning 1639 === Verbose logging stopped: 11/17/2011 12:44:20 ===

I've tried to redownload the install 3 times now same issues...

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