SQL 2005 SP2 Error during install

I was updating my SQL Server 2005 with SP2 (SQLServer2005SP2-KB921896-x86-ENU.exe) running on Server 2003, and it kept getting an error on the installation of the Database Services. It gave me a log file to look at located at:

C:\Program Files\Microsoft SQL Server\90\Setup Bootstrap\LOG\Hotfix\SQL9_Hotfix_KB921896_sqlrun_sql.msp.log

and it was HUGE! it took forever, but I finally found this message burried in the log:
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MSI (s) (98!44) [22:27:08:640]: Product: Microsoft SQL Server 2005 -- Error 28062. SQL Server Setup cannot install files to the compressed or encrypted folder: D:\Program Files\Microsoft SQL Server\. To continue, make sure that your installation directories are not compressed or encrypted, or specify a different directory, and then run SQL Server Setup again.

Error 28062. SQL Server Setup cannot install files to the compressed or encrypted folder: D:\Program Files\Microsoft SQL Server\. To continue, make sure that your installation directories are not compressed or encrypted, or specify a different directory, and then run SQL Server Setup again.
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and sure enough, someone had compressed the entire SQL server folder. So I uncompressed it and re-ran the SP2 update and it worked fine.

Hope this helps!