SQL Server 2008 setup hangs on a x64 system with more than 32 logical processors

You can workaround the problem using one of the following methods:

Method 1: On systems running Windows Server 2008 and 2008 R2, you can affinitizethe Setup program to specific processors. To do so, run the following from an elevated command prompt on these systems:

Start /affinity ffff setup.exe

This technique does require that you run the Setup from the command line. The value ffff is a bitmap that is interpreted as a binary value, with each "on" bit (a 1 in the binary representation of the value) representing a processor to be used. So in the above example, ffff  is 16 digits long in binary, each position set to 1 and it affinitizes the Setup.exe process to the first 16 processors. The value ffffffff would affinitize the Setup program to the first 32 processors, and so on.

Method 2: Before you install SQL Server 2008, temporarily change the number of logical processors to one. This makes the computer appear to be a single-processor system, and SQL Server 2008 is installed successfully. To do this, follow these steps: 

Windows Server 2003

1. To change the number of logical processors in Windows Server 2003, follow these steps:
   1. Click Start, click Run, type msconfig, and then click OK.
   2. In the System Configuration Utility dialog box, click the BOOT.INI tab.
   3. On the BOOT.INI tab, click Advanced Options.
   4. In the BOOT.INI Advanced Options dialog box, click to select the /NUMPROC= check box.
   5. In the list that is next to the /NUMPROC= check box, click 1, and then click OK.
   6. In the System Configuration Utility dialog box, click OK.
   7. Restart the server.
2. Install SQL Server 2008. 
3. Restart the server by using all the processors. To do this, follow these steps:
   1. Click Start, click Run, type msconfig, and then click OK.
   2. In the System Configuration Utility dialog box, click the General tab.
   3. On the General tab, click Normal Startup - load all device drivers and services, and then click OK.
   4. Restart the server.

Windows Server 2008 and Windows Server 2008 R2:

1. To change the number of logical processors in Windows Server 2008, follow these steps::
   1. Click Start, click Run, type msconfig, and then click OK.
   2. In the System Configuration dialog box, click the Boot tab.
   3. On the Boot tab, click Advanced options.
   4. In the BOOT Advanced Options dialog box, click to select the Number of processors check box.
   5. Under the Number of processors check box, click 1, and then click OK.
   6. In the System Configuration dialog box, click OK.
   7. Restart the server.
2. Install SQL Server 2008. 
3. Restart the server by using all the processors. To do this, follow these steps:
   1. Click Start, click Run, type msconfig, and then click OK.
   2. In the System Configuration dialog box, click the General tab.
   3. On the General tab, click Normal startup, and then click OK.
   4. Restart the server.