Every time you start SQL Server it also creates a new tempdb. When you change the layout (physical structure, size) you have to restart SQL Server in order for these changes to take effect.
It seems that the installation routine has changed the layout (it does that according to your input!) and is now trying to stop and restart SQL Server. When you run into this error, have you tried to stop and restart SQL Server manually? After that choose the Retry option of the installation routine. Just a guess...
Do you have some more log information?
Sven
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