Review the Sqlstp.log file in the Windows directory. Review both the SQL error log in the MSSQL7\Log directory and the Cnfgsvr.out file in the MSSQL7\Install\ directory.
If your installation fails and you are unable to determine the cause, you should look for and save the sqlstp.log file in the Windows directory and the cnfgsvr.out file in the Mssql\Install\ directory, along with any other files that are left under your target program directory location (for example, C:\Mssql7). Of particularinterest is the cnfgsvr.out file and any error logs in the Mssql7\Log directory. If the Setup application fails, it will roll back changes to the file system, including removing any copied files, and also remove changes to the registry.
Also verify the system requirements:
A minimum of 183 megabytes (MB) free disk space (but as little as 30 MB for a compact installation).
An Intel-compatible or DEC Alpha processor; there is no Power PC or millions of instructions per second (MIPS) support.
A 133 MHz or better Pentium, Pentium Pro, or Pentium II processor.
A minimum of 32 MB RAM (but only 16 MB if you will not be doing any replication).
Microsoft Windows NT? Server 4.0 Service Pack 4, Windows NT Workstation 4.0 ServicePack 4, Windows? 95, or Windows 98.
Microsoft Internet Explorer 4.01 SP1.
Microsoft Systems Management Server, version 1.2 or later. SQL Server 7.0 is not compatible with Systems Management Server versions earlier than 1.2.
Maxwell