HI Paul amstaur ,
This exact issue I have faced before and this is a permission issue . Please do below things to get rid of.
Since you have already installed the app-volume , revert the snapshot or install a vanilla OS. Provide sufficient permission in local security policy if you are installing SQL express along with app volume such as backup as a administrator , debug as a administrator , log on as a service to the domain user. also make sure the time is correct on the machine . You need to reboot the machine once you given the permission . Most of the cases you have already full filled whatever mentioned above but still you will get error. To get rid of this , you need to copy the appvolume installation files to the local directory , may be in C drive and recommending not to mount the ISO in virutual CD ROM , instead copy and extract the ISO locally. next imporant thing is that you need to run the AppVolume setup.exe as run as administrator.