SQL Server has encountered the following error: Incorrect Function.

Yesterday, I came across a question in one of the forums. It was interesting. The user was trying to install SQL Server 2008 R2. After entering the License key in the Setup, the SQL Server installation would terminate reporting the below error.

SQL Server Setup Failure
SQL Server has encountered the following error:
Incorrect Function

There was not much information in any of the logs but for this error. This error usually occurs when the installation media is corrupt or there is some issue with the .net framework.

As suggested, he downloaded a new copy of the installation media and the installation completed successfully. The disk was bad when he tried installing for the first time.