Posting the following which we found offline in the SQL logs found in this location
<drive>:\Program Files\Microsoft SQL Server\100\Setup Bootstrap\LOG\
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A previous release of Microsoft Visual Studio 2008 is installed on this computer. Upgrade Microsoft Visual Studio 2008 to the SP1 before installing SQL Server 2008.
Exception type: Microsoft.SqlServer.Configuration.RulesEngineExtension.RulesEngineRuleFailureException
Message:
A previous release of Microsoft Visual Studio 2008 is installed on this computer. Upgrade Microsoft Visual Studio 2008 to the SP1 before installing SQL Server 2008.
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Here is the download link for the Visual Studio Sp1 service pack which resolved the SQL problem.
http://www.microsoft.com/downloads/details.aspx?familyid=FBEE1648-7106-44A7-9649-6D9F6D58056E&displaylang=en