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System Center 2012 Virtual Machine Manager Installation Failure with error 1603

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OS is Server 2012 R2, SQL Server Enterprise Edition with SP1, ADK 8.0
I am unable to install System Center 2012 SP1. It fails with 1603 error. Part of VMMServer log is below;
CustomAction EnableWsmanCredSSP returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)
MSI (s) (A4:A4) [18:12:13:392]: Note: 1: 2265 2:  3: -2147287035
MSI (s) (A4:A4) [18:12:13:392]: Machine policy value 'DisableRollback' is 0
MSI (s) (A4:A4) [18:12:13:392]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
Action ended 18:12:13: EnableWsmanCredSSP. Return value 3.

Any ideas would be greatly appreciated, as I am out of any possible solutions.

Tommy


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