Here is the log
12:47:45| Info| === Setup bootstrap logging started 7/23/2014 12:47:45 PM ===
12:47:45| Info| Bootstrap version: 6.0.0.302.
12:47:45| Info| User: coach.
12:47:45| Info| Invoked with command line: Server\amd64\SetupServer.exe
12:47:45| Info| Running G:\Server\amd64\SetupServer.exe
12:47:45| Info| Loading bootstrap library G:\Server\amd64\ServerSetup.dll
12:47:45| Info| Microsoft Dynamics CRM is not currently installed.
12:47:45| Info| Closing bootstrap library G:\Server\amd64\ServerSetup.dll
12:47:45| Info| Patchfile target Product code: {0C524D55-1409-0060-BD7E-530E52560E52}
12:47:45| Info| Patchfile target version: 6.0.0000.0302
12:47:45| Info| Patchfile target language: 1033
12:47:45| Info| Patchfile target upgrade code: {20EA1269-CD24-459C-B8D7-E227D70386D9}
12:47:45| Info| Patchfile passed validation checks.
12:47:45| Info| MSP file G:\Server\amd64\Update\Server_KB2888948_amd64_1033.msp will be installed
12:47:45| Info| Searching for MU Service in system
12:47:45| Info| MU service found in system.
12:47:45| Info| MU is registered with AU
12:47:45| Info| MU Service registration status = Registered
12:47:47| Info| Do not update Radio clicked -- proceeding with setup without update
12:47:48| Info| Do not update Radio clicked -- proceeding with setup without update
12:47:48| Info| Copying installer files to local directory:
12:47:48| Info| Package: G:\Server\amd64\Server.msi, Options: ADDLOCAL="Installer" INSTALLDIR="C:\Users\coach\AppData\Local\Temp\6\MSCRM_{8C19967E-A0E2-42C5-B5A0-963ADB3C5DB8}" TARGETDIR="C:\Users\coach\AppData\Local\Temp\6\MSCRM_{8C19967E-A0E2-42C5-B5A0-963ADB3C5DB8}"
ALLOWRUN=1 PATCH="G:\Server\amd64\Update\Server_KB2888948_amd64_1033.msp"
12:47:48| Error| Error 1603 reported by MsiInstallProduct
12:47:48| Error| Setup cannot proceed because an error occured while copying installer files to the local system: Fatal error during installation. (setup.cpp:CCrmSetup::CopyInstallerFiles:499).
I have validated that the destination folder does appear to exist and can see no particular rights issue.
