Biztalk 2006 Installation on Multiple Servers

So this is the 3rd time I have encountered this error, so I am blogging about it... Hoping, that by blogging it, it will re-inforce this in my brain and next time I encounter this error, it wont take me that long to figure it out.

Installing Biztalk 2006 on an environment that was previously setup by an IT department with a zealous security guy making the decisions on naming conventions and user accounts is a NIGHTMARE. You can have firewall, ports, security policies, insufficient rights to SQL Server, application pools not setup correctly, etc...

This one environment I have had to work with was just like my IM name ;). Anyways, after about an hour or so trying to find out why the configuration of Biztalk 2006 will just suddenly die after creating 3 databases. I keep getting this one error:

BizTalk Server cannot access SQL server. This could be due to one of the following reasons:

1. Access permissions have been denied to the current user. Either log on as a user that has been granted permissions to SQL and try again, or grant the current user permission to access SQL Server.
2. The SQL Server does not exist or an invalid database name has been specified. Check the name entered for the SQL Server and database to make sure they are correct as provided during SQL Server installation.
3. The SQL Server exists, but is not currently running. Use the Windows Service Control Manager or SQL Enterprise Manager to start SQL Server, and try again.
4. A SQL database file with the same name as the specified database already exists in the Microsoft SQL Server data folder.

Internal error from OLEDB provider: "Cannot open database "BizTalkRuleEngineDb" requested by the login. The login failed."

And btw, I only had access to 2 domain accounts, instead of the 10+ accounts recommended to run Biztalk with. So finally my friend Monish mentioned about installing the SQL client connectivity tools on the Application server where Biztalk was being installed. duh. Just another case of RTFM. Here is the Biztalk Installation Guide. Cleaned up the old DB's and re-started the configuration, and this time it created all databases.

Makes me wonder, why is the configuration tool of Biztalk running and creating half way installation scripts, but yet it can't finish creating the rest of the databases. I guess I need to dig more information into this.