This article is a step by step sql server 2008 setup instruction.

Prerequisites for SQL Server 2008 installation

1) SQL Server 2008 installation package (SQL Server 2008 Enterprise Evaluation 180 day edition may be downloaded from Microsoft web site for free)

2) .Net Framework 3.5 SP1 - optional

3) Latest service pack or cumulative update of sql server 2008 (Cumulative Update 3 as of 01.30.2009)

4) Fulfillled operating system and hardware requirements. Basic requirement is that your computer processor speed is 1400 GHz or faster and there is 512 MB or more RAM.

This installation guide does not require sql server machine to be connected to the internet provided you copied stand alone version of .Net Framework 3.5 SP1. You can copy it by this link.

Step by step installation of SQL Server 2008

Load you SQL Server 2008 drive and run its auto play. You will see the next window for a minute.

 In awhile SQL Server Intallation Center will show up. I recommend that you first run System Configuration checker before actual installation.

If System Configuration Checker reported success go to installation page of SQL Server Installation Center and click "New SQL Server stand alone installation or add features to an existing installation" (of course if you are not going to install or upgrade a clustered instance).

SQL Server 2008 setup window will appear. It will run its setup support rules check. Make sure that all statuses are "passed"

Then you will be asked to choose future edition of your sql server instance, for instance choose Enterprise Evaluation

On the next page read thoroughly License Terms and sign checkbox "I accept the license terms"  if you agree.

Then SQL Server 2008 Setup will prompt to setup support files. Click next.

Look at the setup support rules check for the setup support files installation. Failures must be concerned before setup can continue. Warning may be ignored.

Click next and you will be asked to select sql server 2008 features to be installed. Use button select all if you are interested in every feature. Click Next button.

Following page concens instance configuration. Choose whether you are going install the default instance or a named instance. In case of named instance type the future instance name. Select Instance root directory, nothing bad if you leave it default. You don't need to change instance ID either.

 On the next page you will be shown Disk Space requirements. As you see All features selected installation requires ~2.7 GB total.Click next.

 On Server Configuration page Service Accounts tab you need to define accounts sql server services will run under. It is appropriate for a local development server use NT AUTHORITY\SYSTEM account but in production environment all the services must run under its own domain accounts with least privileges given. Choose also startup type for your services. On production servers unused services should be disabled.

The second tab of Server configuration page is Collation. This is very critical page and you need to choose right collation for your sql server during installation processes because after sql server is installed changing server collation is a real nightmare. By default sql server 2008 setup chooses location based on the operating system locale. If you need a custom collation click customise button

Clicking customize location button the next window will show up. Both Database Engine and Analysis Services collations may be customized

Next page Database Engine Configuration consists of three tabs: Account provisioning, Data Directories and FILESTREAM.

On the Account Provisioning you need to choose Authentication mode of sql server instance (windows or mixed) and administrators for the Database Engine. In case of mixed mode you will be also asked to enter sa password.

On Data Directories tab you need to specify the next directories

Data Directories, User database directory and User database log directory - where database files will be put if don't specify it during creation (for instance running create database mydatabase query), temp db data/log file directories and backup directory - default backup location.

FILESTREAM tab may be left untouched. You will be able to configure this right clicking on the sql server (MSSQLSERVER)-> properties in SQL Server Configuration Manager - sql server services node.

If you selected Analysis Services feature to be installed you will see Analysis Services Configuration page next. On its two tabs specify administrators of Analysis Services

and data directories.

If reporting services feature was selected then next page will be Reporting Services Configuration. Not too much of settings whether install the native mode default configuration or install the sharepoint integrated mode default configuration. Choose appropriate.

On the Next page - Error and Usage Reporting will be two checkboxes -

send windows and sql server error reports to microsoft or your corporate report server and

Sent feature usage data to Microsoft. I recommend you mark both checkboxes

Then SQL Server 2008 Setup will run Installation Rules again. Check the statuses.

 Next page Ready to install summarizes all features and settings you have chosen. Look carefully through this list and click back if you find something unwanted.

Click install and wait for 30-60 minutes. Usually sql server 2008 installation process time is 15 minutes on powerful production servers and 1 hour on desktop machines.

During installation minor errors may occur

If these errors are not critical SQL Server 2008 Setup will keep installing the rest.

In the end you will see Complete page with Summary log. Your SQL Server 2008 installation completed successfully

Now reboot the server.

After this install you sql server version will be 10.0.1600 RTM. I strongly recommend that you install most recent services packs and cumulative updates. As of Jan 31 2009 it is Cumulative Update 3 which upgrades sql server to  10.0.1787 version.