When deploying MSI packages through Group Policy in Active Directory, error 1274 typically indicates a timing or permission issue during the software installation phase. The error manifests with several related symptoms in the System event log:

Event ID 108: The assignment of application XStandard from policy install failed. The error was : %%1274
Event ID 109: The removal of the assignment of application XStandard from policy install failed
Event ID 105: Failed to apply changes to software installation settings

Error 1274 (ERROR_SERVICE_NEVER_STARTED) often occurs when the Windows Installer service fails to initialize properly during Group Policy processing. In Windows Vista specifically, this can be caused by:

• UAC (User Account Control) interfering with service startup
• Incorrect Software Restriction Policies
• Delayed startup of dependent services
• Insufficient permissions for the SYSTEM account

Before troubleshooting GPO, validate your MSI package with this PowerShell command:

Get-WindowsFeature -Name MSI-Package-Validator | Install-WindowsFeature
msiexec /i yourpackage.msi /lv* install.log

Check the generated install.log for any pre-installation failures that might affect GPO deployment.

Try these registry modifications to address the service timing issue:

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Group Policy]
"SoftwareInstallWaitTimeout"=dword:00000e10

This extends the default timeout from 300 seconds to 3600 seconds.

If GPO continues to fail, consider these workarounds:

1. Create a startup script with delayed execution:

   @echo off
   timeout /t 60
   msiexec /i "\\server\share\package.msi" /qn

2. Use PowerShell DSC for more reliable deployment:

   Configuration DeployMSI {
       Node "localhost" {
           Package XStandard {
               Ensure = "Present"
               Path = "\\server\share\package.msi"
               Name = "Application Name"
               ProductId = "XXXX-XXXX-XXXX-XXXX"
           }
       }
   }

Capture installation attempts with this filter set in ProcMon:

Process Name: msiexec.exe
Operation: CreateFile
Result: ACCESS DENIED

This helps identify permission issues that might be masked by error 1274.

When deploying MSI packages via Group Policy in Active Directory environments, error 1274 typically indicates a timing or permissions issue during the software installation phase. The specific error chain shows:

Event ID 108: "The assignment of application XStandard from policy install failed. The error was : %%1274"
Event ID 103: "Failed to apply changes to software installation settings..."

Error 1274 (ERROR_SERVICE_NOT_ACTIVE) occurs when the Windows Installer service isn't running during Group Policy processing. On Windows Vista, this often happens because:

• Group Policy processing occurs before the Windows Installer service starts
• User-specific installations attempt before system services initialize
• MSI validation requirements not being met during early boot phase

Here are proven solutions with implementation details:

# Force synchronous policy processing (registry tweak)
reg add "HKLM\Software\Microsoft\Windows\CurrentVersion\Policies\System" /v "SyncForegroundPolicy" /t REG_DWORD /d 1 /f

# Alternative: PowerShell script to retry installation
$retryCount = 0
do {
    Start-Process msiexec.exe -ArgumentList "/i XStandard.msi /qn" -Wait
    $retryCount++
    if ($retryCount -gt 3) { break }
    Start-Sleep -Seconds 30
} while ((Get-WinEvent -FilterHashtable @{LogName='System';ID=108} -MaxEvents 1).Message -match "1274")

For enterprise environments, consider these approaches:

1. Wrap the MSI in a startup script with service verification:

   @echo off
   :check_service
   sc query msiserver | find "RUNNING"
   if %errorlevel% neq 0 (
       timeout /t 5 >nul
       goto check_service
   )
   msiexec /i "\\server\share\XStandard.msi" /qn

2. Convert the assignment to a published application and trigger via:

   gpupdate /force
   MsiExec /jm "XStandard"

Enable verbose logging for deeper analysis:

reg add "HKLM\Software\Policies\Microsoft\Windows\Installer" /v "Logging" /t REG_SZ /d "voicewarmupx" /f
gpupdate /force

The log file at %windir%\temp\MSI*.log will reveal the exact failure point during deployment.

These registry values often help in Vista environments:

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Group Policy\State\Machine]
"ExtensionProcessingTimeout"=dword:0000003c

[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\Installer]
"AlwaysInstallElevated"=dword:00000001