Hi tklenke,
I think the problem is with Active directory or Database.
How you have installed the SQL server?? did you installed SQL with domain user or local user??
The CRM server is unable to create the database because its not in network or MSCRM_CONFIG already exists.
So make sure you are installing CRM with domain admin user which is having local admin permissions in the CRM Server, Active Directory and SQL Server.
Khaja Mohiddin