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Thanks for the feedback.
Thanks for Sean's response on this issue. In your situation, Microsoft Online Services Sign-in Assistant couldn't be installed so that Error 1603 occurs, the Desktop Setup get stuck and stop configure your desktop, so the other Error occurs.
We suggest you:
Uninstall the Microsoft Online Services Sign-in Assistant (if exist) from Start> Control Panel> Uninstall a program. Then download and run the Desktop setup again from the Downloads page in MOP(Microsoft Online Portal).
If above doesn't help, you may try:
Uninstall the Microsoft Online Services Sign-in Assistant(if exist), download Microsoft Online Services Sign-In Assistant from http://www.microsoft.com/download/en/details.aspx?id=28177 according to the System Type, save it on the Desktop, double click the Standalone Installer to install it.
After installation finished, download and run the Desktop Setup again in MOP.
You may also refer to:
Manually update and configure desktops for Office 365 http://onlinehelp.microsoft.com/en-us/office365-enterprises/ff637585.aspx
Troubleshoot update and configuration issues for Office 365 http://onlinehelp.microsoft.com/en-us/office365-smallbusinesses/ff652568.aspx
You could post any screen shot of the error message if it still could not be resolved.
Are you logged into the workstation as a user that is a local Admin on the workstation? Have you tried to turn off User Account Control when doing the installs?
The first suggestion helped to resolve the configuration issues! Thank you.Evan.
Thanks for your update on this issue, and I'm glad to hear that you have solved the problem. If you have other quetions, please feel free to post on the forum.