Error during Install

I am tring to install ESM on my Windows 2003 Standard sp2 server and I keep getting the same error no matter what I do to correct it

The server is running SQL express sp2 and has lots of memory and hard rive space available

Below is a screen shot of the actual error during the ESM install process after all the options have been selected it appears to happen during the creation of the database

The install version of CESM is 1.1.1822.42
The error appears to be some mismatch in the DB versions