Error installing MSMQ 2.0 server…

I get error code 0xC00E0013 when trying to install MSMQ 2.0 server on my Win2k server (Used as PDC). Error indicates “unable to establish connection with Active Directory.”
Error references permission level. However, I have tried this as my normal ID, my Domain Admin ID, Local machine ID and my Enterprise Admin ID. All experience the same error. I have checked all account permissions and they have accurate permissions. Active Directory is on the machine, since its a PDC. Any clues?