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Ran into this on a failing MP repair in our DMZ.  The error was a 1603, and according to the mp.msi logs it was unable to create the virtual directories for the MP to function.  What was looking like a complete IIS rebuild turned out to be a known issue surrounding BITS; and a far simpler solution then I had originally imagined.

The long and short or it; uninstall and reinstall the BITS feature, then reinstall the MP site component and bam.

 

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