Thanks for the hints. I ran WSReset.exe and disabled Sophos, but the problem persists. I am getting the attached error output in the setuperr.log file. I don’t use any symbolic links to other partitions.
2013-10-18 13:29:02, Error MOUPG CSetupManager::Execute(355): Result = 0x800705BB
2013-10-18 13:29:02, Error MOUPG CSetupHost::Execute(204): Result = 0x800705BB
2013-10-18 13:37:24, Error InitDownlevelOCMode caught exception: Win32Exception: Invalid machine account for SYSTEM: The name provided is not a properly formed account name. [0x00000523] class UnBCL::String *__cdecl Mig::COnlineWinNTPlatform::GetMachineSid(class
UnBCL::String *)
2013-10-18 13:37:24, Error MIG OC Exception: OC::CDownlevelOCStore::CDownlevelOCStore: Engine's InitDownlevelOCMode failed.
2013-10-18 13:37:24, Error SP Could not save OC status. Error: 0x8007001F
2013-10-18 13:39:19, Error MigStartupOnline caught exception: Win32Exception: Invalid machine account for SYSTEM: The name provided is not a properly formed account name. [0x00000523] class UnBCL::String *__cdecl Mig::COnlineWinNTPlatform::GetMachineSid(class
UnBCL::String *)
2013-10-18 13:39:19, Error SP pSPDoMainGather: Engine initialization failed with error: 0x00000004
2013-10-18 13:39:19, Error SP CGatherData: Migration phase failed. Status: 4[gle=0x00000012]
2013-10-18 13:39:19, Error SP Operation failed: Gather data, scope: Everything. Error: 0x80070004[gle=0x000000b7]
2013-10-18 13:39:19, Error MOUPG MoSetupPlatform: ExecuteCurrentOperations reported failure![gle=0x000000b7]
2013-10-18 13:39:19, Error MOUPG MoSetupPlatform: Using transform error code: [0x80070004][gle=0x000000b7]
2013-10-18 13:39:19, Error MOUPG CDlpTransformDataMigrate::MigrateData(1382): Result = 0x80070004[gle=0x000000b7]
2013-10-18 13:39:19, Error MOUPG CDlpTransformDataMigrate::TransformFile(1065): Result = 0x80070004[gle=0x000000b7]
2013-10-18 13:39:19, Error MOUPG CDlpTransformDataMigrate::Execute(527): Result = 0x80070004
2013-10-18 13:39:21, Error MOUPG CDlpTask::ExecuteTransform(3154): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CDlpTask::ExecuteTransforms(3327): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CDlpTask::Execute(1550): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CSetupManager::ExecuteTask(1158): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CSetupManager::ExecuteTask(1123): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CSetupManager::Execute(404): Result = 0x80070004
2013-10-18 13:39:25, Error MOUPG CDlpTask::RestartTransform(2444): Result = 0xC1800107
2013-10-18 13:39:26, Error MOUPG CDlpTransformFinalize::LogMachineInfo(878): Result = 0x80070002[gle=0x000000cb]
2013-10-18 13:40:43, Error MOUPG CSetupHost::Execute(204): Result = 0x80070004
2013-10-18 13:45:46, Error MOUPG CSetupManager::Execute(355): Result = 0x800705BB
2013-10-18 13:45:46, Error MOUPG CSetupHost::Execute(204): Result = 0x800705BB
2013-10-18 13:49:24, Error InitDownlevelOCMode caught exception: Win32Exception: Invalid machine account for SYSTEM: The name provided is not a properly formed account name. [0x00000523] class UnBCL::String *__cdecl Mig::COnlineWinNTPlatform::GetMachineSid(class
UnBCL::String *)
2013-10-18 13:49:24, Error MIG OC Exception: OC::CDownlevelOCStore::CDownlevelOCStore: Engine's InitDownlevelOCMode failed.
2013-10-18 13:49:24, Error SP Could not save OC status. Error: 0x8007001F
2013-10-18 13:50:29, Error MigStartupOnline caught exception: Win32Exception: Invalid machine account for SYSTEM: The name provided is not a properly formed account name. [0x00000523] class UnBCL::String *__cdecl Mig::COnlineWinNTPlatform::GetMachineSid(class
UnBCL::String *)
2013-10-18 13:50:29, Error SP pSPDoMainGather: Engine initialization failed with error: 0x00000004
2013-10-18 13:50:29, Error SP CGatherData: Migration phase failed. Status: 4[gle=0x00000012]
2013-10-18 13:50:29, Error SP Operation failed: Gather data, scope: Everything. Error: 0x80070004[gle=0x000000b7]
2013-10-18 13:50:29, Error MOUPG MoSetupPlatform: ExecuteCurrentOperations reported failure![gle=0x000000b7]
2013-10-18 13:50:29, Error MOUPG MoSetupPlatform: Using transform error code: [0x80070004][gle=0x000000b7]
2013-10-18 13:50:29, Error MOUPG CDlpTransformDataMigrate::MigrateData(1382): Result = 0x80070004[gle=0x000000b7]
2013-10-18 13:50:29, Error MOUPG CDlpTransformDataMigrate::TransformFile(1065): Result = 0x80070004[gle=0x000000b7]
2013-10-18 13:50:29, Error MOUPG CDlpTransformDataMigrate::Execute(527): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CDlpTask::ExecuteTransform(3154): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CDlpTask::ExecuteTransforms(3327): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CDlpTask::Execute(1550): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CSetupManager::ExecuteTask(1158): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CSetupManager::ExecuteTask(1123): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CSetupManager::Execute(404): Result = 0x80070004
2013-10-18 13:50:30, Error MOUPG CDlpTask::RestartTransform(2444): Result = 0xC1800107
2013-10-18 13:50:31, Error MOUPG CDlpTransformFinalize::LogMachineInfo(878): Result = 0x80070002[gle=0x000000cb]
2013-10-18 13:51:11, Error MOUPG CSetupHost::Execute(204): Result = 0x80070004