Product: Microsoft Visual Studio 2005 Premier Partner Edition - ENU -- Error 1718.File C:\WINDOWS\Installer\236249.msp did not pass the digital signature check. For more information about a possible resolution for this problem, see http://go.microsoft.com/fwlink/?LinkId=73863.
This problem appears because of a (in my opinion) design fault in the Microsoft Installer, which is unable to verify a digital signature when the installer file is too large.
Following the instructions in the Microsoft KB article solved the problem for us. However, we had to change the domain controller group policy, and not the local group policy since this was being installed on a domain controller.
Also note that you will have to wait a little while before the policy will be activate, you do NOT have to reboot.