Sophos Control Center: protect computers wizard fails with error

Issue
When you are protecting computers with the Network Protection wizard, the wizard fails on step 4 generating the error message :

Sophos security software cannot be installed on networked computers with the account entered. Re-Enter the password or try a different account

Sophos product and version
SBE Control Center 2.0.1

Operating systems
Windows XP Professional SP2

What to do

Check the following:

Installing on a domain:

• Make sure the account does exist
• Username and Password are correct
• The account has full administrator permissions

Installing on a workgroup:

• Make sure the account does exist
• Username and Password are correct
• The account has full administrator permissions
• Create a universal account on each workstation with full administrator access.