If I remember right that’s usually a DTC problem. Or a permissions problem.
This may help: http://www.biztalkgurus.com/blogs/biztalk/archive/2005/06/21/BizTalk-2004-Installation-Problems-on-Windows-2003-With-SP1.aspx
Ensure you are installing under Group Account and your install user and other host users have the correct permissions.
Microsoft had some KB’s on this if you look around a bit I’m sure you can find them.