Hi,
Go to the software download section on Cisco website and search there for a patch that is specifically posted there for installing LMS on a Windows Server 2003 R2 machine.
According to the readme file for LMS 4.0, you must use this "patch" if you want to install LMS on this OS. Read more in the readme document for LMS 4.0
Please mark this as an answer for your question if it does solve your problem.
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