Wait on the Database Engine recovery handle failed!! SQL Server 2012 installation

Question

Can someone please guide me on how to overcome the following error. I am trying to install SQL Server 2012 Express on my win7 32bit system. I had SQL Server 2008 R2 32 bit installed in this system, which was removed by the previous user (this is an official system (laptop) I am using).

Here is the log file generated after unsuccessful installation:

Overall summary:
  Final result:                  Failed: see details below
  Exit code (Decimal):           -2061893607
  Start time:                    2013-07-12 15:43:20
  End time:                      2013-07-12 15:55:46
  Requested action:              Install

Setup completed with required actions for features.
Troubleshooting information for those features:
  Next step for SQLEngine:       Use the following information to resolve the error, uninstall this feature, and then run the setup process again.


Machine Properties:
  Machine name:                  FSLTECYOUBRAJ
  Machine processor count:       4
  OS version:                    Windows 7
  OS service pack:               Service Pack 1
  OS region:                     United States
  OS language:                   English (United States)
  OS architecture:               x86
  Process architecture:          32 Bit
  OS clustered:                  No

Product features discovered:
  Product              Instance             Instance ID                    Feature                                  Language             Edition              Version         Clustered 

Package properties:
  Description:                   Microsoft SQL Server 2012 
  ProductName:                   SQL Server 2012
  Type:                          RTM
  Version:                       11
  SPLevel:                       0
  Installation location:         D:\New folder\MSI's\Excel\SQLEXPRWT_x86_ENU\x86\setup\
  Installation edition:          Express

Product Update Status:
  User selected not to include product updates.

User Input Settings:
  ACTION:                        Install
  ADDCURRENTUSERASSQLADMIN:      true
  AGTSVCACCOUNT:                 NT AUTHORITY\NETWORK SERVICE
  AGTSVCPASSWORD:                *****
  AGTSVCSTARTUPTYPE:             Disabled
  ASBACKUPDIR:                   Backup
  ASCOLLATION:                   Latin1_General_CI_AS
  ASCONFIGDIR:                   Config
  ASDATADIR:                     Data
  ASLOGDIR:                      Log
  ASPROVIDERMSOLAP:              1
  ASSERVERMODE:                  MULTIDIMENSIONAL
  ASSVCACCOUNT:                  <empty>
  ASSVCPASSWORD:                 <empty>
  ASSVCSTARTUPTYPE:              Automatic
  ASSYSADMINACCOUNTS:            <empty>
  ASTEMPDIR:                     Temp
  BROWSERSVCSTARTUPTYPE:         Disabled
  CLTCTLRNAME:                   <empty>
  CLTRESULTDIR:                  <empty>
  CLTSTARTUPTYPE:                0
  CLTSVCACCOUNT:                 <empty>
  CLTSVCPASSWORD:                <empty>
  CLTWORKINGDIR:                 <empty>
  COMMFABRICENCRYPTION:          0
  COMMFABRICNETWORKLEVEL:        0
  COMMFABRICPORT:                0
  CONFIGURATIONFILE:             
  CTLRSTARTUPTYPE:               0
  CTLRSVCACCOUNT:                <empty>
  CTLRSVCPASSWORD:               <empty>
  CTLRUSERS:                     <empty>
  ENABLERANU:                    true
  ENU:                           true
  ERRORREPORTING:                true
  FEATURES:                      SQLENGINE
  FILESTREAMLEVEL:               0
  FILESTREAMSHARENAME:           <empty>
  FTSVCACCOUNT:                  <empty>
  FTSVCPASSWORD:                 <empty>
  HELP:                          false
  INDICATEPROGRESS:              false
  INSTALLSHAREDDIR:              C:\Program Files\Microsoft SQL Server\
  INSTALLSHAREDWOWDIR:           <empty>
  INSTALLSQLDATADIR:             <empty>
  INSTANCEDIR:                   C:\Program Files\Microsoft SQL Server\
  INSTANCEID:                    SQLEXPRESS2012
  INSTANCENAME:                  SQLEXPRESS2012
  ISSVCACCOUNT:                  NT AUTHORITY\Network Service
  ISSVCPASSWORD:                 <empty>
  ISSVCSTARTUPTYPE:              Automatic
  MATRIXCMBRICKCOMMPORT:         0
  MATRIXCMSERVERNAME:            <empty>
  MATRIXNAME:                    <empty>
  NPENABLED:                     0
  PID:                           *****
  QUIET:                         false
  QUIETSIMPLE:                   false
  ROLE:                          AllFeatures_WithDefaults
  RSINSTALLMODE:                 DefaultNativeMode
  RSSHPINSTALLMODE:              DefaultSharePointMode
  RSSVCACCOUNT:                  <empty>
  RSSVCPASSWORD:                 <empty>
  RSSVCSTARTUPTYPE:              Automatic
  SAPWD:                         *****
  SECURITYMODE:                  SQL
  SQLBACKUPDIR:                  <empty>
  SQLCOLLATION:                  SQL_Latin1_General_CP1_CI_AS
  SQLSVCACCOUNT:                 NT Service\MSSQL$SQLEXPRESS2012
  SQLSVCPASSWORD:                <empty>
  SQLSVCSTARTUPTYPE:             Automatic
  SQLSYSADMINACCOUNTS:           CADOMAIN\youbarajs
  SQLTEMPDBDIR:                  <empty>
  SQLTEMPDBLOGDIR:               <empty>
  SQLUSERDBDIR:                  <empty>
  SQLUSERDBLOGDIR:               <empty>
  SQMREPORTING:                  false
  TCPENABLED:                    0
  UIMODE:                        AutoAdvance
  UpdateEnabled:                 false
  UpdateSource:                  MU
  X86:                           false

  Configuration file:            C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20130712_154108\ConfigurationFile.ini

Detailed results:
  Feature:                       Database Engine Services
  Status:                        Failed: see logs for details
  Reason for failure:            An error occurred during the setup process of the feature.
  Next Step:                     Use the following information to resolve the error, uninstall this feature, and then run the setup process again.
  Component name:                SQL Server Database Engine Services Instance Features
  Component error code:          0x851A0019
  Error description:             Wait on the Database Engine recovery handle failed. Check the SQL Server error log for potential causes.
  Error help link:               http://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.2100.60&EvtType=0xE53883A0%400xBE03358B%401306%4025&EvtType=0xE53883A0%400xBE03358B%401306%4025

  Feature:                       SQL Browser
  Status:                        Passed

  Feature:                       SQL Writer
  Status:                        Passed

  Feature:                       SQL Client Connectivity
  Status:                        Passed

  Feature:                       SQL Client Connectivity SDK
  Status:                        Passed

Rules with failures:

Global rules:

Scenario specific rules:

Rules report file:               C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20130712_154108\SystemConfigurationCheck_Report.htm

Answer 1

Ok, after 6 hours of struggle and 'googling' I could finally get this work. The problem was due to some account name conflict. Here are the steps I followed to set it right

1) Un-installed the SQLserver

3) Re-installed it back with following changes

• In the server configuration section, I changed the account name details to "NT AUTHORITY/LOCALSERVICE" (during the installation process)

Please remember to set it as "NT AUTHORITY/NETWORKSERVICE" if LOCAL SERVICE is not allowed.