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See my comments for the CAS installer here: Re: CAS Installation on EID 2.3 , although it's a different product/installer, I believe that the same problem can occur, perhaps due to elevation or local policy restrictions.
Per that thread, try manually granting the "Log on as a service" right to the account you want to use as the service account, then run the installer.
Thanks Breat, that was indeed the problem.
For reference, I just added the local account to the "log on as a service" user right in the local security policy.