Currently, I am installing BizTalk Server 2004 in a multi-server environment with a remote, clustered SQL Server.  While installing Sharepoint Services 2.0, I encountered the following error after entering the database information:

“Device activation error.  The physical file name “WSS_Config.mdf”  may be incorrect (Error Code: 5105)”

After wasting a full day on figuring out the issue, the issue turned out to be an invalid configuration setting in the SQL Virtual Server settings.  Once I got the SQL Administrator involved, he was able to determine the problem by the nature of the error.  In this case, the path to the data file was missing a colon.