Welcome to part 5 in a series of posts which describe how to create a Microsoft Office Project Server 2007 Virtual PC image for demos and development work. Last time, we looked at how to install and configure the .NET framework inside our VPC image. This time, we’ll look at how to install SQL Server 2005 inside the virtual machine.
Part 5: Installing SQL Server 2005
Insert the SQL Server 2005 installation media, start the installation, then click Install: Server components, tools, Books Online, and samples:

In the End User License Agreement dialog box, read the agreement very carefully, select the I accept the licensing terms and conditions checkbox, then click the Next button:

In the Installing Prerequisites dialog box, click the Install button:

When the components are successfully installed, click the Next button:

On the installation wizard welcome screen, click the Next button:

On the System Configuration Check screen, after all tests have finished successfully, click the Next button:

On the Registration Information screen, enter your Name and Company, then click the Next button:

On the Components to Install screen, click the Advanced button:

On the Feature Selection screen, select the following features to be installed on the local hard drive, then click the Next button:
Database Services (all)
Analysis Services (all)
Reporting Services (all)
Integration Services
Client Components (all)
Documentation, Samples, and Sample Databases
SQL Server Books Online
Sample Databases
AdventureWorks Sample OLTP

On the Instance Name screen, select Default instance, then click the Next button:

On the Service Account screen, select Use the built-in System account: Network service, select the SQL Server Agent and Analysis Services services to start at the end of setup, then click the Next button:

On the Authentication Mode screen, select Windows Authentication Mode, then click the Next button:

On the Collation Settings screen, select Collation designator and sort order: Latin1_General, then click the Next button:

On the Report Server Installation Options screen, select the Install but do not configure the server option, then click the Next button:

On the Error and Usage Report Settings screen, deselect both options, then click the Next button:

On the Ready to Install screen, review the selected installation options, then click the Install button:

When component installation is complete, click the Next button:

When setup is complete, click the Finish button:

You should now have a fully-functional SQL Server 2005 installed inside your VPC image.
In Part 6, we’ll look at how to configure SQL Server 2005 inside the VPC image for storing Project Server 2007 data.