Since yesterday I’ve been trying to setup SharePoint Services 3.0 on a server which is running MS Exchange. Everytime when I start the installation, the installer reports back that the installation has been completed successfully and now I need to run the configuration wizard in order to finish the installation. I ran the wizard and it crashed at stage 2 where it tries to create a Configuration Database and reported an error stating: Failed to create the configuration database.

I opened the log file and got more details about the error:
An exception of type System.Data.SqlClient.SqlException was thrown. Additional exception information: Could not find stored procedure ‘dbo.proc_getObjectsByClass’.System.Data.SqlClient.SqlException: Could not find stored procedure ‘dbo.proc_getObjectsByClass’.

I also found the following error in Event Viewer under the Event ID 5586:
Unknown SQL Exception 2812 occured. Additional error information from SQL Server is included below.Could not find stored procedure ‘dbo.proc_getObjectsByClass’.

…which was followed by Event ID 104:
Failed to create the configuration database.
An exception of type System.Data.SqlClient.SqlException was thrown. Additional exception information: Could not find stored procedure ‘dbo.proc_getObjectsByClass’.
System.Data.SqlClient.SqlException: Could not find stored procedure ‘dbo.proc_getObjectsByClass’.
at System.Data.SqlClient.SqlConnection.OnError(SqlException exception, Boolean breakConnection)
at System.Data.SqlClient.SqlInternalConnection.OnError(SqlException exception, Boolean breakConnection)

… and Event ID 100:
Configuration of SharePoint Products and Technologies failed. Configuration must be performed in order for this product to operate properly. To diagnose the problem, review the extended error information located at C:Program FilesCommon FilesMicrosoft SharedWeb Server Extensions12LOGSPSCDiagnostics_4_12_2008_14_11_5_734_1835669046.log, fix the problem, and run this configuration wizard again.

This problem had me for good and after numerous repairs, removals and retries, I called it a day. The next day I started searching for some resources on the Internet for this error and came across the following KB article: KB934790

Yes, I did have WSUS installed on this server and that was the cause. The problem had been nailed down. I got the hotfix, installed it and re-installed Sharepoint Services 3.0. This time it was a piece of cake.