Normally, if you try to install picasa on winows server 2008, you would get "current user not authorized to install" error. This happens because of some strange reason and seems to work when these steps are done-
Start->Administrative Tools->Server Manager (as admin)
Select "Features" from the list and then click the "Add feature" link.
Select "Desktop Experience" and restart.
After this, I could install picasa and also got a bunch of other regular desktop utilities.
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