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Windows Server 2008 R2 DataCenter + Sql 2008 install leads to CAS Policy error

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I created a new Windows Server 2008 R2 SP1 DataCenter VM using a Microsoft Azure image

I enabled the .NET 351 Framework via Features in Service Manager and installed IE11 (as I needed to download a file from OneDrive)

As soon I began to install sql 2008 I received this error:

"Microsoft.NET Framework CAS Policy Manager has stopped working"

Problem signature:  BEX64
Application Name:   caspol.exe
Application version: 2.0.50727.5483
Fault module Name:  System.Data.Dll


The odd part is I did this very same install on an Azure Windows VM 3 or 4 months ago and it worked fine.
Any ideas much appreciated.

edm2


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