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SharePoint 2010 Installation Failed - FIPS validated cryptographic algorithms

Posted By:      Posted Date: October 11, 2010    Points: 0   Category :SharePoint
Hi All,
We are trying to install SharePoint 2010 foundation on a Windows 2008 Standard-SP2 (NOT R2).
After installing SharePoint when we run the config wizard for the first time we get the below mentioned error. We have another box which hosts MS SQL Server 2008 and we noticed that the config database is created but the wizard fails during the Create Config Database step.
Local security policy for FIPS is disabled.

Failed to create the configuration database.
An exception of type System.InvalidOperationException was thrown.  Additional exception information: This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms.
System.InvalidOperationException: This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms.
   at System.Security.Cryptography.SHA256Managed..ctor()
   at Microsoft.SharePoint.UserCode.SPSolutionValidatorCollection.ComputeHash()
   at Microsoft.SharePoint.Administration.SPUserCodeService.UpdateValidatorsHash()
   at Microsoft.SharePoint.Administration.SPPersistedChildCollection`1.Add(T newObj, Boolean ensure)
   at Microsoft.Sha

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