>Funny, but I am judging monthly Guru Contributions and I just came across this article (haven't read yet, reading now) which is exactly on your problem
>
>http://social.technet.microsoft.com/wiki/contents/articles/24364.could-not-find-database-engine-startup-handle-error-during-sql-server-installation.aspx

I am trying it now. The problem here is that it indicates, as I mentioned previously, to use NT AUTHORITY\SYSTEM account. This account does not exist in Windows 8.1. So, I am pretty sure this is where the problem is caused for either during the setup or when trying to connect. Would you have any idea on what account I should use?