Trying to install PS2007 with SP1 on Server 2003. The install goes fine, but when running the SharePoint Configuration Wizard, it fails at stage 6 of 12 with the error:

Failed to register SharePoint Services. An exception of type System.InvalidOperationException was thrown. Additional exception information: Cannot start service ProjectEventService on computer '.'.

From the PSCDiagnostics log:

Exception: System.InvalidOperationException: Cannot start service ProjectEventService on computer '.'. ---> System.ComponentModel.Win32Exception: The service did not respond to the start or control request in a timely fashion.

The ProjectEventService (Microsoft Office Project Server Event) won't even start manually using the Network Service account. Starting the service with a domain account works, but subsequently running the Config Wizard causes the service to be removed and re-provisioned to run using the Network Service account, which again fails.

Presumably Network Service needs elevated permissions, but even adding it to the local Admin group makes no difference.

Anyone come across this sort of issue before?