Error When Installing WSUS 3.0 Microsoft.UpdateServices.UI.OOBEWizard.exe has encountered a problem

Microsoft.UpdateServices.UI.OOBEWizard.exe has encountered a problem and
needs to close.

An unexpected error occurred, and this wizard must be closed. You may
restart the WSUS Server Configuration Wizard from the Options page in the
WSUS 3.0 console.

An assortment of ASP.NET errors are recorded in the Application Event Log:

Event Type: Warning
Event Source: ASP.NET 2.0.50727.0
Event Category: Web Event
Event ID: 1310
Date: 5/12/2009
Time: 1:26:04 PM
User: N/A
Computer: xxxx
Description:
Event code: 3007 Event message: A compilation error has occurred. Event time: 5/12/2009 1:26:04 PM Event time (UTC): 5/12/2009 5:26:04 PM Event ID: 77ee98c9366d4d0cb67ce4c02c98b9c7 Event sequence: 3 Event occurrence: 1 Event detail code: 0 Application information: Application domain: /LM/W3SVC/1849729167/ROOT/ReportingWebService-1-128866227616091191 Trust level: Full Application Virtual Path: /ReportingWebService Application Path: c:\Program Files\Update Services\WebServices\ReportingWebService\ Machine name: xxx Process information: Process ID: 4816 Process name: w3wp.exe Account name: NT AUTHORITY\NETWORK SERVICE Exception information: Exception type: HttpCompileException Exception message: (0): error CS0016: Could not write to output file 'c:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\Temporary ASP.NET Files\reportingwebservice\70f4a500\a9659a85\App_global.asax.puglg14n.dll' -- 'Access is denied. ' Request information: Request URL: http://xxx:8530/reportingwebservice/reportingwebservice.asmx Request path: /reportingwebservice/reportingwebservice.asmx User host address: 192.168.202.30 User: Is authenticated: False Authentication Type: Thread account name: NT AUTHORITY\NETWORK SERVICE Thread information: Thread ID: 1 Thread account name: NT AUTHORITY\NETWORK SERVICE Is impersonating: False Stack trace: at System.Web.Compilation.AssemblyBuilder.Compile()
at System.Web.Compilation.BuildProvidersCompiler.PerformBuild()
at System.Web.Compilation.ApplicationBuildProvider.GetGlobalAsaxBuildResult(Boolean isPrecompiledApp)
at System.Web.Compilation.BuildManager.CompileGlobalAsax()
at System.Web.Compilation.BuildManager.EnsureTopLevelFilesCompiled()
at System.Web.Hosting.HostingEnvironment.Initialize(ApplicationManager appManager, IApplicationHost appHost, IConfigMapPathFactory configMapPathFactory, HostingEnvironmentParameters hostingParameters)
Custom event details:

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.


Event Type: Warning
Event Source: ASP.NET 2.0.50727.0
Event Category: Web Event
Event ID: 1310
Date: 5/12/2009
Time: 1:26:07 PM
User: N/A
Computer: xxx
Description:
Event code: 3007 Event message: A compilation error has occurred. Event time: 5/12/2009 1:26:07 PM Event time (UTC): 5/12/2009 5:26:07 PM Event ID: 2dc5a74d65af49c8aa0871edf2abca72 Event sequence: 3 Event occurrence: 1 Event detail code: 0 Application information: Application domain: /LM/W3SVC/1849729167/ROOT/ApiRemoting30-2-128866227659840071 Trust level: Full Application Virtual Path: /ApiRemoting30 Application Path: c:\Program Files\Update Services\WebServices\ApiRemoting30\ Machine name: xxx Process information: Process ID: 4816 Process name: w3wp.exe Account name: NT AUTHORITY\NETWORK SERVICE Exception information: Exception type: HttpCompileException Exception message: (0): error CS0016: Could not write to output file 'c:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\Temporary ASP.NET Files\apiremoting30\607f2849\28bfc666\App_global.asax.sna8jy4a.dll' -- 'Access is denied. ' Request information: Request URL: http://bcportal:8530/ApiRemoting30/WebService.asmx Request path: /ApiRemoting30/WebService.asmx User host address: 192.168.202.30 User: Is authenticated: False Authentication Type: Thread account name: NT AUTHORITY\NETWORK SERVICE Thread information: Thread ID: 1 Thread account name: NT AUTHORITY\NETWORK SERVICE Is impersonating: False Stack trace: at System.Web.Compilation.AssemblyBuilder.Compile()
at System.Web.Compilation.BuildProvidersCompiler.PerformBuild()
at System.Web.Compilation.ApplicationBuildProvider.GetGlobalAsaxBuildResult(Boolean isPrecompiledApp)
at System.Web.Compilation.BuildManager.CompileGlobalAsax()
at System.Web.Compilation.BuildManager.EnsureTopLevelFilesCompiled()
at System.Web.Hosting.HostingEnvironment.Initialize(ApplicationManager appManager, IApplicationHost appHost, IConfigMapPathFactory configMapPathFactory, HostingEnvironmentParameters hostingParameters)
Custom event details:

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

------------------------------
Resolution:

grant FULL ACCESS for Network Service account to the folder:
C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\Temporary ASP.NET Files\
and
C:\Windows\Temp