It looks like it is a known issue with Microsoft as you can see <a href=”http://support.microsoft.com/kb/932441″>here: http://support.microsoft.com/kb/932441</a>
Microsoft offers a workaround for the issue in the form of registry edits. If you are unfamiliar with using the registry editor – then you probably shouldn’t! Make a backup prior to editing the registry.
When you have completed that open Regedit and navigate to and then click the following registry subkey:
Next you want to Right-click Disable Performance Counters, and then click Modify.
You should now see the Value data box, type 0 (zero), and then click OK.
Exit the registry
Restart the machine
And attempt your install again. The issue usually occurs from the Perfproc performance counters being disabled or tampered with. If Perfproc does not work you will not be able to install R2.
Let me know how it goes!