Thanks Scarab...that's exactly what I needed to do.
So, there is a bug in the installer. It needs to check if it has SP1 installed and if so allow it to run. I have to remove SP1, rerun the installation (after a complete removal and reboot! Yay for our uptime stats!) and then update the SP1 packake as it will just get pulled by WSUS.
A note for the ST staff...this only effected our Win2k8R2 server.