Re: Error 28038 setup cannot create vcenter instance

Try the following steps.

1. Right-click the root drive and clickProperties.
2. Click theSecuritytab.
3. Under Group and user names, clickAdd.
4. Enter Network Service and clickOK.
5. CheckAllowfor the Read permission for the Network Service account in the Permissions for Administrators pane.
6. ClickApplyandOK.

If this does not help, then check the following KB.

http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1015887

VMware KB: Installing vCenter Server does not complete with Windows Server 2008