Windows 1603 error received installing FTA on Windows 2008 server

Symptom

5-8-0001-0001 com.tivoli.cmismp.product.actions.SWDSoftwarePackageAction
----------- Command --------------
wdinstsp -f -uy -D install_dir="c:\win32app\TWS" -D tws_user="twsuser" -D group="null" -D installer="admin" -D jm_port="31114" -D
jm_sec_port="0" -D tdwb_port="0" -D tdwb_hostname="tdwbhost" -D host_name="host" -D execActionTools="false"
-D domain="domain" -n "xxxxxxxx" "c:\TWS\WINDOWS_X86_64\Tivoli_LWA_WINDOWS_X86_64.SPB"
----------- Command output -------

CMW3202E Command failed.
----------- Error log ------------


DISSE0197E Execution of user program 'during_install - c:
\win32app\TWS\_uninstall\ACTIONTOOLS\vcredist.cmd ("c:
\temp\TWA\tws851")' failed.

DISSE0198I User program exit code: 1603

DISSE0123E Unable to execute or complete execution of program
'during_undo - c:\win32app\TWS\ShutdownLwa.cmd ()'.

DISSE0005E Operation unsuccessful.

vcredist_x86.log

MSI (s) (24:70) [21:08:27:022]: Product: Microsoft Visual C++ 2005 Redistributable -- Installation failed.

MSI (s) (24:70) [21:08:27:024]: Windows Installer installed the product. Product Name: Microsoft Visual C++ 2005 Redistributable. Product Version: 8.0.56336. Product Language: 0. Manufacturer: Microsoft Corporation. Installation success or error status: 1603.

MSI (s) (24:70) [21:08:27:028]: Deferring clean up of packages/files, if any exist
MSI (s) (24:70) [21:08:27:028]: MainEngineThread is returning 1603
MSI (s) (24:90) [21:08:27:034]: RESTART MANAGER: Session closed.
MSI (s) (24:90) [21:08:27:034]: No System Restore sequence number for this installation.


cbs.log:

2013-08-05 21:08:26, Error CSI 00000e75 (F) Impactful transactions are disabled at this time, cannot continue.[gle=0x80004005]
2013-08-05 21:08:26, Error CSI 00000e76 (F) HRESULT_FROM_WIN32(ERROR_FAIL_REBOOT_REQUIRED) #75857853# from Windows::COM::CPendingTransaction::IStorePendingTransaction_Pend(...)[gle=0x80070bc9]
2013-08-05 21:08:26, Error CSI 00000e77@2013/8/6:02:08:26.750 (F) c:\w7rtm\base\wcp\componentstore\com\transaction.cpp(290): Error HRESULT_FROM_WIN32(ERROR_FAIL_REBOOT_REQUIRED) originated in function Windows::COM::CPendingTransaction::IStorePendingTransaction_Pend expression: HRESULT_FROM_WIN32(3017L)
[gle=0x80004005]
2013-08-05 21:08:26, Error SXS Required Pend Transaction failed with 0x80070bc9