DPM database could not be created

I ran into rare error message during a DPM setup today. The message stated that the DPM database could not be created. This is a more common error when using a remote database, but in this case I used the local instance.

Full error message:
The DPM database was not created.Use Add or Remove Programs in Control Panel to remove the DPM files and registry entries that were created during Setup. Verify that SQL Server is properly installed and that it is running, and then run Setup again. ID: 811

When checking the event log I found that the error is not directly related to the SQL installation. But the DPM services could not start.

Log Name:
SystemSource: Service Control Manager
Date: 12-6-2009 14:28:47
Event ID: 7001
Task Category: NoneLevel:
ErrorKeywords:
ClassicUser: N/A
Computer: xxxx
Description:The DPM service depends on the Virtual Disk service which failed to start because of the following error: The service cannot be started, either because it is disabled or because it has no enabled devices associated with it.

This event log message pointed me to the correct solution, due to security lock down of the machine, the Virtual disk services was set to disabled.

After setting the Virtual disk service to manual and restarting the installation, the installation completed successfully.