>Thank you for responding. That did not work. I received the error:
>
>Incorrect command parameters
>
>I typed in the run:
>e:\sqlmsde\setup.exe e:\sqlmsde\setup\sqlrun01.msi

Hmm, I don't have anything else concrete to suggest. You need to be logged on as Admin to do the install, it's probably a good idea to temporarily disable any antivirus while you do the install.

General troubleshooting: http://support.microsoft.com/default.aspx?scid=kb;EN-US;317328

A search on Google for "The instance name specified is invalid" yields some hits which might be useful.

You could play around with the command-line parameters: http://msdn.microsoft.com/library/default.asp?url=/library/en-us/distsql/distsql_84xl.asp

Did that machine ever have MSDE 2000 or SQL Server 2000 on it earlier? If so, you may need to use SQLRUN02, SQLRUN03, etc. Is there anything else unusual about your machine that might affect the installation?