When running the Act 2011/ACT 2012 Setup the following error ( Managed SQL Server Installer has stopped working) is displayed followed by the SAGE Act issue submission page.

(NOTE: This will also be applicable to any application that attempts to install SQL 2008 R2 as part of its setup routine)

The error results from .NET Framework 4.0 client profile being installed on the computer before SQL Server® 2008 R2 installs, which a component of the Sage ACT! installation. You can work around this issue by removing the .NET Framework 4.0 client profile from the computer and then attempting the installation again. The .NET Framework 4.0 client profile is an optional update and can be reinstalled if desired after the Sage ACT! installation. Please use the following steps:

Note: The following information is provided as a convenience. Sage does not provide support for Microsoft® Products. .

1. From the Start menu, select Control Panel.
2. Double-click Add or Remove Programs (or Programs and Features if Windows® Vista®/7/Windows Server® 2008).
3. In the list, locate Microsoft .NET 4 Client Profile and select to uninstall.
4. Once the uninstall has completed, reboot the computer.
5. Install Sage ACT!

For further reading and installation information regarding Microsoft .NET 4 Client Profile, please view the following Microsoft document:

Microsoft .NET Framework 4 Client Profile (Standalone Installer)

The original article can be viewed on the Sage KB here

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