JRE 1.6.0_22 silent install is failing on WINDOW SERVER 2008 when
done in system context (whatever that means)
Works on all other platforms of Windows the customer has tested on.

Here is what they are doing to repro this issue.
***
The local installation of JRE on Windows 2008 using system context does NOT work. Here is how we test it:

1) Use “psexec.exe –s cmd.exe” – This opens command prompt under system context
2) Type everything within quotes but not the quotes itself "jre-6u22-windows-i586.exe /s IEXPLORER=1 MOZILLA=1 ADDLOCAL=ALL REBOOT=Suppress JAVAUPDATE=0 JU=0 AUTOUPDATECHECK=0 STATIC=1 /L %TEMP%\in16022.log"
3) Task Manager shows exe running for 2-3 hours
4) Nothing happens afterwards – no files are installed, no registry entry - Nothing
***

They confirm that the system context has ADMIN rights.

They see no failures. There is no log file generated, although as you can see
they are specifying one. There is not much to go on here.
The install hangs for hours

I had them do the following
From the ADMIN account
open a dos window
execute the above silent install command

This worked, which leads me to believe this is not a JRE issue.
I am not clear on what doing this from System context changes or
if this is supported and should work in the first place.

I can see from the JRE install doc, WINDOWS 2008 SERVER is a support4ed
platform.