Error attempting to install Windows Server 2008

I have a PowerEdge SC420 and I am attempting to install Window Server 2008 Standard, however I repeativitly receive the following error message:

Windows cannot install required files. Make sure all files required for installation are available, and restart the installation. Error code: 0x80070070.

I have tried the following:

- Tried a different install DVD

- Check hard drive space which I have over 100GB of free space

- Ran Scan Disk and Defrag

Does anyone have any ideas or  have seen and resolve the issue.

Thanks,
CincyMarcus