Hi Wessberg,
You got couple of things going wrong in the installation.
1) Use a domain account for running sql service
2) Do not use the defualt collation, use SQL_Latin1_General_CP1_CI_AS
3) Double check the ADSIedit.msc configuration for the "system management". Clearly permissions are missing
Note: Quickest way to change the schema is to re-install sql server. I found it buggy to change schema after patching up to newer service level.
I hope this helps you.
Thanks