We had this same problem, and found this fix:
If installing onto an already existing Windows 2003 sp2 server, you will need to make the following modification. Otherwise, the installer will tell you that the service pack is not the correct version for installation.
1) Copy the R2 files off the R2 CD2 and uncheck Read-Only
2) Browse to \CMPNENTS\R2\ and edit the file R2INTL.INF, change the R2SPLevel = 1 to R2SPLevel = 2
Wednesday, May 5, 2010
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