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The above error message indicates UpdateEXPERT's Settings Management component did not satisfy the SA authentication challenge from a Local SQL instance.
Allow the installation process to continue until it appears to be finished. Then uninstall and re-install Settings Management, following these steps:
If you do not know the Local SQL instance UpdateEXPERT is currently using, you may examine the ODBC connection information for UpdateEXPERT, see:
Using UpdateEXPERTDSN with UpdateEXPERT Premium 7.x
Use Add/Remove Programs to change UpdateEXPERT's installation to exclude Settings Management (uncheck the option and continue).
Set the SA account authentication password to SBS_Database for the selected SQL instance.
Use Add/Remove Programs to change UpdateEXPERT's installation to include Settings Management (check the option and continue).
You may confirm proper installation by launching UpdateEXPERT, downloading one or more Security Templates and selecting SecurityEXPERT menu items that exercise SecurityEXPERT's web interface components.
Note that when running setup, a "Typical" install includes Settings Management by default, and that a "Custom" install allows de-selection of Settings Management, as well as Patch Management, if your intention is to install a Console only.