Don't make the same mistake as I did recently which was installing the wrong edition of Windows Server 2008 R2 in order to make use of Failover Cluster services.
I installed Standard edition of Windows Server 2008 R2 but in order to make use of the Failover Cluster services and managment snap-in, you need either Windows Server 2008 R2 Datacentre or Windows Server 2008 R2 Enterprise.
Attempting to install SQL Failover Cluster in standard edition will give you the following error message during the validation process: The local computer is not a member of a windows failover
This document describes the whole administration process: http://technet.microsoft.com/en-us/library/cc731844(WS.10).aspx
Wael Al Wirr
you might install some extension on VS10 Ultimate on Windows Server 2003 R2 (32 bit). As soon as the extension installed it threw up some vague Install error and now on restart of VS it shows a dialog saying "Feature Builder Runtime - The environment variable LocalAppData must be manually configured for Windows XP and Windows Server 2003. Please visit http://channel9.msdn.com/tags/FeatureBuilder for more info".
Right-click on the My Computer icon and choose Properties
Click Environment Variables
Under User variables section, click New
In the Variable name: field, type LOCALAPPDATA
In the Variable value: field, type %USERPROFILE%\Local Settings\Application Data
Wael Al Wirr