CCMsetup.exe will not install: Failed to access source file (3)

Issue
Today we bumped into an issue installing the SCCM client manually. The error in the C:\Windows\CCMSetup\ccmsetup.log stated “Failed to access source file (3). Waiting for retry.”

<![LOG[Downloading file C:\Windows\System32\drivers\sccm\SCCM Client\ccmsetup.exe]LOG]!><time=”10:40:53.549-120″ date=”05-31-2013″ component=”ccmsetup” context=”” type=”1″ thread=”3780″ file=”ccmsetup.cpp:5569″>
<![LOG[Downloading C:\Windows\System32\drivers\sccm\SCCM Client\ccmsetup.exe to C:\Windows\ccmsetup\ccmsetup.exe]LOG]!><time=”10:40:53.549-120″ date=”05-31-2013″ component=”ccmsetup” context=”” type=”1″ thread=”3780″ file=”ccmsetup.cpp:5653″>
<![LOG[Failed to access source file (3). Waiting for retry…]LOG]!><time=”10:40:53.549-120″ date=”05-31-2013″ component=”ccmsetup” context=”” type=”2″ thread=”3780″ file=”ccmsetup.cpp:5665″>
<![LOG[Next retry in 10 minute(s)…]LOG]!><time=”10:40:53.549-120″ date=”05-31-2013″ component=”ccmsetup” context=”” type=”0″ thread=”3780″ file=”ccmsetup.cpp:8498″>

Cause and solution
After some investigation we discovered that the customer copied the SCCM setup folder in the C:\Windows\System32 folder and was running the setup from there. This is because of security prohibited. After this we moved the folder to C:\temp and the setup ran fine.