This instillation error occurred even though after verifying the Software and Hardware requirements as well as prerequisites for SQL Server 2008 installation with the initial steps of the installation.
Error indicates that there is a network error while reading the file Sql21D7.tmp.msi. When I checked, this file is not available in the specified path. I even tried to install the Database engine with Full Text Search and Replication and also even tried installing only the Database engine, but still installation failed with the same error.
I verified all the installation documents as well googled for this error with no luck.
Finally, copied and pasted one of the msi file in the installation location (indicated in the error message) and renamed the file to Sql21D7.tmp.msi. After this change we are able to install the SQL Server 2008 successfully.
Right now I am not sure where it will impact, i will post my findings after working on the server for next few days...
