I got this error while i was updating my sql server 2005 express edition to Sql server 2008 edition. For solution of this error, I found that I need to install the Window Powershell ( a microsoft component). After installing that Installation completed the successfully ran.

Visit on below link to download the window powershell:

http://www.microsoft.com/downloads/en/details.aspx?familyid=6CCB7E0D-8F1D-4B97-A397-47BCC8BA3806&displaylang=en

To download this, we need to pass window genuine check. After check you will get the download link. Size of this component is 1.5 MB (english language component)