Error installing Visual Source Safe 2005 on Windows Server 2008 R2

[mjonas]

I am trying to install VSS 2005 (server portion) on Windows Server 2008 R2, but am getting an error right after the install begins. Vs_setup.msi exists in the specified location and the same file works to install on the client machine.

Error Log
[05/27/11,14:02:14] Microsoft Visual SourceSafe 2005 - ENU: [2] ERROR_FILE_NOT_FOUND/ERROR_INSTALL_PACKAGE_OPEN_FAILED returned in CRootComponent::Install for: e:\common\it\sourcesafe 2005 install\vs_setup.msi
[05/27/11,14:02:14] VS70pgui: [2] DepCheck indicates Microsoft Visual SourceSafe 2005 - ENU is not installed.