Run Time Error 53 on new install of Sage 500

HI,

I have setup a new server running Windows server 2008 R2 and running SQL Server 2008. This is the same setup that we currently have running.

I have put in the Sage 500 disc and run the foundation install. I go through the settings but when i click 'Next' on the 'Database Login' settings screen it comes up with an

'Run-time Error '53'  File not found' error messages and crashes out.

Has anyone come across this before?

Many thanks