XADM: Error 0x8000500D Received While Trying to Install Exchange 2000 KMS Services (305303)

SYMPTOMS

When you attempt to install Exchange 2000 Key Management Service (KMS), Setup fails with the following error message:

Setup failed while installing sub-component Key Management Service with error code 0x8000500D (please consult the installation logs for a detailed description). You may cancel the installation or try the failed step again.

CAUSE

This behavior occurs because the encryption object has been deleted from the Advanced Security container in Active Directory. The following is an example of the path to this object:

CN=Encryption,CN=Advanced Security,CN=First Administrative Group,CN=Administrative Groups,CN=ORGNAME,CN=Microsoft Exchange,CN=Services,CN=Configuration,DC=corporation,DC=com

This object is created in Active Directory during the initial installation of Exchange 2000, and should always be present even if Exchange 2000 KMS is never installed. The setup process assumes that the object will be present, and fails because it is not.

RESOLUTION

Re-create the encryption object in Active Directory. The Setup program typically does this during an initial installation, but you can force this to occur again by performing a reinstall option (not remove/re-add):

In Control Panel, double-click Add/Remove Programs.
Click Microsoft Exchange 2000.
After Setup starts, change the action for Microsoft Exchange 2000 to reinstall (this will set all the other product components selected to reinstall as well).
Click Next twice to initiate the reinstall process, which can take some time. During this time the services will be stopped, the schema will be updated (which will not affect anything because this occurred during the initial installation), files will be copied, and finally, the security objects will be re-created (this includes the Advanced Security container, as well as the encryption object within).
Click Finish.

You should now be able to install the Exchange 2000 KMS.