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If the MSDE_VC is already installed and the database has been created under it, the older database is not removed or overwritten.
To work around this problem, remove the MSDE_VC database:
If you are not able to remove the MSDE_VC database instance successfully using Add/Remove Programs, delete the VCDB.mdf and VCDB.ldf files under MSDE Install Folder\MSSQL$MSDE_VC\Data\.