Env: OS: Win2008 R2 (running inside VirtualBox) RAM: 2GB Installed all available Windows Updates
My fresh SP2010 prerequisites and installation went well. Later while running the SharePoint Product Configuration for the first time, at Step# 8, while creating Sample Database, it gave me this error:

Event Viewer contains this entry:
Log Name: Application
Source: SharePoint 2010 Products Configuration Wizard
Date: 2/9/2010 6:03:01 PM
Event ID: 104
Task Category: None
Level: Error
Keywords: Classic
User: N/A
Computer: SP2010
Description:
Failed to create sample data.
An exception of type Microsoft.Office.Server.UserProfiles.UserProfileException was thrown. Additional exception information: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56)
Microsoft.Office.Server.UserProfiles.UserProfileException: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56) ---> System.Configuration.ConfigurationErrorsException: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56)
at System.Configuration.BaseConfigurationRecord.EvaluateOne(String[] keys, SectionInput input, Boolean isTrusted, FactoryRecord factoryRecord, SectionRecord sectionRecord, Object parentResult)
at System.Configuration.BaseConfigurationRecord.Evaluate(FactoryRecord factoryRecord, SectionRecord sectionRecord, Object parentResult, Boolean getLkg, Boolean getRuntimeObject, Object& result, Object& resultRuntimeObject)
at System.Configuration.BaseConfigurationRecord.GetSectionRecursive(String configKey, Boolean getLkg, Boolean checkPermission, Boolean getRuntimeObject, Boolean requestIsHere, Object& result, Object& resultRuntimeObject)
at System.Configuration.ConfigurationSectionCollection.Get(String name)
at System.ServiceModel.Configuration.ServiceModelSectionGroup.get_Client()
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.GetServiceBinding(String endpointConfigurationName)
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.GetChannelFactory(String endpointConfigurationName)
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.get_Channel()
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
--- End of inner exception stack trace ---
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.GetProfileProperties()
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.RefreshProperties(Guid applicationID)
at Microsoft.Office.Server.Utilities.SPAsyncCache`2.GetValueNow(K key)
at Microsoft.Office.Server.Utilities.SPAsyncCache`2.GetValue(K key, Boolean asynchronous)
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.InitializePropertyCache()
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.Provision()
at Microsoft.SharePoint.PostSetupConfiguration.EvalModeProvisionTask.ProvisionServiceApplicationsAndProxies()
at Microsoft.SharePoint.PostSetupConfiguration.EvalModeProvisionTask.Run()
at Microsoft.SharePoint.PostSetupConfiguration.TaskThread.ExecuteTask()
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="SharePoint 2010 Products Configuration Wizard" />
<EventID Qualifiers="0">104</EventID>
<Level>2</Level>
<Task>0</Task>
<Keywords>0x80000000000000</Keywords>
<TimeCreated SystemTime="2010-02-09T12:33:01.000000000Z" />
<EventRecordID>1934</EventRecordID>
<Channel>Application</Channel>
<Computer>SP2010</Computer>
<Security />
</System>
<EventData>
<Data>Failed to create sample data.
An exception of type Microsoft.Office.Server.UserProfiles.UserProfileException was thrown. Additional exception information: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56)
Microsoft.Office.Server.UserProfiles.UserProfileException: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56) ---> System.Configuration.ConfigurationErrorsException: Unrecognized attribute 'allowInsecureTransport'. Note that attribute names are case-sensitive. (C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\WebClients\Profile\client.config line 56)
at System.Configuration.BaseConfigurationRecord.EvaluateOne(String[] keys, SectionInput input, Boolean isTrusted, FactoryRecord factoryRecord, SectionRecord sectionRecord, Object parentResult)
at System.Configuration.BaseConfigurationRecord.Evaluate(FactoryRecord factoryRecord, SectionRecord sectionRecord, Object parentResult, Boolean getLkg, Boolean getRuntimeObject, Object& result, Object& resultRuntimeObject)
at System.Configuration.BaseConfigurationRecord.GetSectionRecursive(String configKey, Boolean getLkg, Boolean checkPermission, Boolean getRuntimeObject, Boolean requestIsHere, Object& result, Object& resultRuntimeObject)
at System.Configuration.ConfigurationSectionCollection.Get(String name)
at System.ServiceModel.Configuration.ServiceModelSectionGroup.get_Client()
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.GetServiceBinding(String endpointConfigurationName)
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.GetChannelFactory(String endpointConfigurationName)
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.get_Channel()
at Microsoft.Office.Server.UserProfiles.MossClientBase`1.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
--- End of inner exception stack trace ---
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.ExecuteOnChannel(String operationName, CodeBlock codeBlock)
at Microsoft.Office.Server.UserProfiles.ProfilePropertyServiceClient.GetProfileProperties()
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.RefreshProperties(Guid applicationID)
at Microsoft.Office.Server.Utilities.SPAsyncCache`2.GetValueNow(K key)
at Microsoft.Office.Server.Utilities.SPAsyncCache`2.GetValue(K key, Boolean asynchronous)
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.InitializePropertyCache()
at Microsoft.Office.Server.Administration.UserProfileApplicationProxy.Provision()
at Microsoft.SharePoint.PostSetupConfiguration.EvalModeProvisionTask.ProvisionServiceApplicationsAndProxies()
at Microsoft.SharePoint.PostSetupConfiguration.EvalModeProvisionTask.Run()
at Microsoft.SharePoint.PostSetupConfiguration.TaskThread.ExecuteTask()</Data>
</EventData>
</Event>
Configuration of SharePoint Products failed. Configuration must be performed in order for this product to operate properly. To diagnose the problem, review the extended error information located at C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\LOGS\PSCDiagnostics_2_9_2010_17_44_33_362_561052642.log, fix the problem, and run this configuration wizard again.
Has anyone faced this problem?