Installation of Dynamics NAV 2009 hangs during installation of Outlook Add-in

When installing NAV 2009 RTM you can sometimes if you are unlucky end up with an installer that hangs when installing Outlook Add-in. The most common reason for this is that the installation is not able to update the” Outlook.exe.config” file and get stuck in an infinitive loop.
When looking in the event viewer you will get a similar error message to this:

Product: Microsoft Dynamics NAV 2009 Outlook Add-in — Error 27519.Error updating XML file C:Program FilesMicrosoft OfficeOffice12Outlook.exe.config. -2147024891
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Using SQL Server 2008 Express in Dynamics NAV 2009

NAV 2009 will install SQL Server Express 2005 by default if no SQL server is installed. So if you would like to use SQL Server Express 2008 instead, this is the way to go:

The Demo installation of NAV 2009 is looking for a SQL Server instance called MSSQLSERVER. If the installer can’t find this instance SQL Server Express 2005 will be installed and the Demo Database will be attached to SQL Server 2005 even though you might have had SQL Server Express 2008 installed.
So to install on SQL Server Express 2008 you need to set the instance name to MSSQLSERVER. This way NAV 2009 will install the Demo Database on SQL Server 2008.

Note: SQL Server 2008 requires the following:
.NET Framework 3.5 SP1
Windows Installer 4.5
Windows PowerShell 1.0 (Included in Windows Vista SP1 and Windows Server 2008)

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