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Engaged Sweeper
Downloaded and manually installed SQLEXPRESS 2008 R2.
Installation process reports that SQLEXPRESS loads fine.
I can use the SQL Manager to see the SQLEXPRESS is operational.
Then go to load Lansweeper.
Lansweeper Installation passes the "tests" saying the that the SQL server can be seen and reports that the user name and password is fine.

Lansweeper stalls when loading the database into SQLExpress. The installation never finishes.
Engaged Sweeper
I wasn't patient enough. Loading of the database takes time.

What confused me though is windows reports the application hangs.
Got a "Not Responding" notice using Process Manager.
Windows Server reported an application hang error as well.

Yet if you let the Lansweeper install process enough time - I was in the end successful.

Engaged Sweeper

Do you have other instances of SQL Servers running on the system? Sometimes if there are mixed versions, another application trying to install its own instance can have problems.