When you install SQL 2008/SQL 2008R2/SQLServer2012 “The specified credentials for the SQL Server service are not valid. To continue, provide a valid account and password for the SQL Server service.” Even when you specify correct user name and password

You will see errors similar to one below in details.txt

Slp: Sco.User.LookupADEntry – Attempting to find user account Child-dc\accountname

Slp: Sco: Attempting to check if container ‘WinNT://child-dc’ of user account exists
Slp: UserSecurity.ValidateCredentials — Exception caught and ignored, exception is The RPC server is unavailable.

Slp: UserSecurity.ValidateCredentials — user validation failed

1. This issue happens when we have multiple domains (child and parent) and you use a account created in parent domain as startup account for SQL Server in setup screen. You can add DNS suffix in network properties and override this issue.

2. Also if the user who is running the SQL Server setup doesn’t have Read permission for BUILTIN Folder in the ACTIVE DIRECTORY USERS AND COMPUTERS we will end with above error

If none of the above fixes the error collect Netmon trace and identify which DNS query is failing and fix it.