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This error also translates to Windows error 1503, which means, "The service did not respond to the start or control request in a timely fashion," which in turn means the SRS service hung while Setup was trying to start it.
If you examine the Exchange Setup log file in the root of your drive, you'll see some additional details on this. You may even find some evidence in one or more of the event logs, so I would check those, as well.
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