I renamed it to another name and re-installed sql server.
I noticed that sql server ERRORLOG complained about certificate that it
couldn't load and the generation of a self-generaed certificate (see below)
"2005-12-10 21:01:02.30 Server The server could not load the
certificate it needs to initiate an SSL connection. It returned the following
error: 0x8009030d. Check certificates to make sure they are valid.
2005-12-10 21:01:02.49 Server A self-generated certificate was
successfully loaded for encryption."
Now the installation succeeded