Basically, you are trying to install on Server 2008 x64. Is this standard or R2?
Regardless.
Here are a few things I would like you to do please.
First update (or repair) your IIS version.
Second, install the latest version of (or repair) Visual Studio 2005 SP1 redistributable.
It can be found on the DVD. ..\..\SepWin64\x64\vcredist_x64.exe
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One more thing.
Is this server an Active directory Controller?
Yes -> Cannot log on locally.
No -> Open a Local Session, not a Domain connection and try to install.
There might be a policy in place.
At the very top of your logs, I can see some messages about the package not being signed....
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Almost forgot... You are installing the 64 bit version of SEPM, right?