This drove me crazy!!
According to other forum posts and knowledge base articles I tried the following (among other things):
I made sure I'm using a domain account which has rights.
I used the SQL account which has rights to the database.
I had checked and TCP/IP and named pipes were enabled.
I had tried using both ports 1433 and 2799 for the TCP/IP settings for the SQL settings.
I had checked to make sure the ODBC settings are correct and tested them.
Every time I got the dbinstaller failed message.
I checked the dbinstaller.log and saw the following:
Neither the option -cd nor -ud option is available
That led me to know that it had to be something with SQL. I was using the custom install. On the screen that asks for the SQL password I had been changing it to our specific "sa" account with the password. I tried it again using "Windows authentication" and it successfully installed. (That is the default option, btw.)