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The first thing to check on the cluster installation failure is SQL Server error logs, cluster log & event viewer log. If you are unable to find any information or warning for this behaviour then ensure the Cluster Admin account & SQL Server service account are running local administrator privileges on both the nodes.
In addition to the above ,it is better to check the relevant articles in Books online & this website:
http://msdn2.microsoft.com/en-us/library/ms179530.aspx
http://www.sql-server-performance.com/installing_sql_clustering_virtual_server1.asp
http://www.sql-server-performance.com/clustering_resources.asp
Windows Server 2003 comes with many system services that have different functionalities in the operating system. When Windows Server 2003 is first installed, the default system services are created and are configured to run when the system starts. The Remote Registry Service is used to enable remote users to modify registry settings on a computer. Remote Registry service is mainly used by remote administrators and performance counters. If the Remote Registry Service is disabled, modifying the registry will only be allowed on the local computer.
If you are unable to find any clue from the above information then the last thing to check is status of Remote Registry service and ensure this is up and running on the 2nd node too.
