Unable to install ArcGIS desktop 10.2.1, VM, Error 2211

Hello all
I'm trying to install ArcGIS Desktop 10.2.1, downloaded from ESRI's costumer care website, on top of a fresh VM, occupied with windows server 2012 standard, with 16 GB of ram and virtual SCSI hard drives.
Did follow the pre-requisites, described here: http://resources.arcgis.com/en/help/...00000002000000

At the very beginning of the installation process, I get the following error message:
" Error 2211. Database: .Could not create database table Registry "
After pressing the OK button the installation is terminated.

Attached is a screenshot of the message itself.

Will appreciate any help or clue with this issue.

Thanks in advance,
Gal

Attached Thumbnails