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I had the same issue when logged in under with the domain credentials. Then I tried to log in into the server using the local credentials, connect to the domain and run the installation files again. That seemed to work without any issues.
I had the same issue. Turned out to be that UPK doesnt install properly on windows R2 SP1, you need to remove the fixpack and reinstall and then apply it again or use an alternative like Windows 2008 Enterprise SP2.