SQL Server 2008 R2 Installation error

While installing SQL Server 2008 R2 enterprise edition on WIndows Server 2008 R2 the SQL install fails with following error

TITLE: Microsoft SQL Server 2008 R2 Setup
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The following error has occurred:
Wait on the Database Engine recovery handle failed. Check the SQL Server error log for potential causes.
For help, click: http://go.microsoft.com/fwlink?LinkID=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=10.50.1600.1&EvtType=0xD15B4EB2%25400x4BDAF9BA%25401306%254024

Cause:
This happens because account under which SQL is running is not able access protected folders on C:

To resolve this issue

1. Uninstall SQL
2. Remove all folders created during install (C:\program files, C:\Program Files (X86)
3. Add SQL servier service account (Domain account in my case) to local administrators group on the server
4. Run the setup again