Prepare and Install SharePoint 2010
Please go through the following Microsoft article if you are looking to prepare and install SharePoint 2010 for dev purposes –
- http://msdn.microsoft.com/en-us/library/ee554869(office.14).aspx
It has detailed step by step instructions and the relevant steps to your O/S or env that are to be followed without fail. The link also provides insight into some of the exceptions you might encounter depending on which step you might’ve missed.
Help to some of the other errors that are likely to surface while running the SharePoint 2010 Configuration error is as follows –
Exception – Failed to create the configuration database. An exception of type System.Security.Cryptography.CryptographicException was thrown. Additional exception information: The data is invalid.
Resolution – This has two steps
Step 1: Make sure that the “Network Service” account has full access to the “14” directory under %commonprogramfiles\Microsoft Shared\Web Server Extensions.
Step 2: Delete the registry key located under “SOFTWARE\Microsoft\Shared Tools\Web Server Extensions\14.0\Secure\FarmAdmin” Registry key and then run the SharePoint 2010 Products Configuration Wizard.
It is likely that this registry key is required to be cleared each time you run the wizard after an unsuccessful attempt:)
Exception – “An exception of type Microsoft.SharePoint.SPException was thrown. Additional exception information :User cannot be found.”
Likely cause – The admin account that you are using for the install is a domain account and the workstation is not connected to the domain????
Resolution – Make sure your workstation is connected to the domain – use VPN if working remotelyJ and run the wizard again by clearing the registry key as advised above.
Hopefully this will come in handy for some of you.
I will revise this if I make further observations, and I’d greatly appreciate if you guys keep me appraised of any other issues that you guys might have come across:)

Thanks for your help! It resolved the described error that I got while installing Sharepoint 2010 on Win 2008 R2 (virtual server), initially an error was received because of “memory outage” and most likely it created the reg key as described in step 2 of the Exception – Failed to create the configuration database. An exception of type System.Security.Cryptography.CryptographicException was thrown. Additional exception information: The data is invalid error.