These are the poorly documented rules.
Server name must not be greater than 8 characters.
If the server name is greater than 8 characters either reformat and start over, or roll back your installation back to before you installed SQL Server, then rename your server.
Install XML 3 & 4 and SQLXML. Take care of this early.
If BAM does not configure the first time, then install with it disabled, then reconfigure afterwards. For some reason this self fixes about half of the time.
You can run the dev tools on a non-biztalk box, but testing and editing is a bugger.
Get over it. We know that MS screwed up the installer on this product. Don’t linger on it. Once you get it running it will be fine.
For preventative issues, make sure that you have installed all of Window’s and SQL’s SPs as you are installing. More seemed to just popup while I was 50% though my first round of installs.
If possible, do not rely on Active Directory. (At least for your dev box.) That just adds a whole new level of complexity. Also do not install on a DC.
Brian By Experience 