can you post the installation logs? look here:
\AdminUI\XmlStorage\Extensions\bin\Deployment\Dell\PowerEdge\setup

Greg, we have the same issue in our lab. Also running SCCM 2007 R2 with SQL 2008 as a Primary Site on guest OS 2008 Enterprise OS. However, guest VM (the SCCM server) is 32-bit and running on Hyper-V. Installing DDP 1.1 with elevated rights always results in the installer hanging at "Installing Broadcom Drivers for WinPE" I'll post the _Installer.txt file. That's the only log I saw in the path you posted. I also grabbed the componentinstall.xml file

With the 2000 character limit on posts, is there another way to upload the install log to you?

This has been documented in the Readme as a known issue. The issue is primarily due to the SQL server 2008 compatability mode.
“If SQL Server 2008 is used as the ConfigMgr site database, ensure that the compatibility mode of the database is set to 90 (SQL Server 2005) to ensure successful installation of DSDP 1.1"

To change SQL compatibility mode, follow the steps in link http://msdn.microsoft.com/en-us/library/bb510680.aspx

Hope this helps.

Now that it's installed, we can set the compatibility mode back to SQL 2008 right?

Great minds think alike. I found that doc. thanks for the confirmation that it was indeed that.

Ok, so I go it to work and the install completed successfully. The only thing I did before I reran the install was to place the SCCM SIte Database in SQL 2005 (90) compatibility mode. In the readme file it says to place the database in compatibility mode (90) if using SQL 2008. I went into the properties of the site database and changed the compat mode and then reran the install. It completed with no issues.

Also for those reading, don't forget in WS08 or Vista, run the .MSI from an elevated command prompt. You'll get errors if you don't.

If you plan to do Import of Driver from the Dell Systems Management DVD in to ConfigMgr using the DSDP driver import wizard you need to have the SQL compatability mode still on. If you are not going to use the driver import wizard you can revert back the compatability mode.

Please note that any driver import operation using DSDP will need the compatability mode set.(For ex: This applies when you are uninstalling DSDP)