SQL 2008 Install Problem

[red3recon]

I am a SQL n00b, mostly using some hand-jammed ASP to access/update data. Now I have been tasked to develop a web map of our campus so I need the geospatial functionality of SQL 2008. I have a server (Windows 2003) that is limited by domain policy. I tried to install SQL 2008, but when it gets to the part where it is starting the service it craps out and says “Access Denied.” So I installed SQL 2005 without a glitch (using the exact service account) and it works flawlessly. So I tried to upgrade the SQL 2005 install to SQL 2008 and it again made it to the part where it tried to restart the service and it craps out saying something about poor server health and that the service could not be restarted. I can restart the service no problem with SQL 2005. I have looked everywhere trying to find an answer to this. The one “tidbit” I found was that you must use an account that has “Logon as a Service” permissions; however, that is disabled by group policy. Again, SQL 2005 works great using the same account…does SQL 2008 require more out of the service account than 2005? Any help, insight, or even general comments are appreciated. Thanks!