Hello ,
This could be an issue with the user account entered - domain.com\user as opposed to domain\user could trip this error. Suggest you to try a fresh installation with the domain\user credentials.
Here is an article that details how to manually remove the bits and pieces of SQL Server 2005 due to this error -
How to manually uninstall an instance of SQL Server.
Let us know if this helps you fix the issue.
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