7.0.3 Fails to Install Sucessfully

I am trying to upgrade from 6.7 to 7.0.3 in a windows server 2008 R2 64 bit environment. The installaion wizard says that the current instance is compatible for upgrade and when I navigate through the installation wizard and get to the completion dialog it tells me there are errors during installation.

BUILD FAILED
C:\Users~\AppData\Local\Temp\2\054170.tmp\system\installResources\install.xml:548: The following error occurred while executing this line:
C:\Users~\AppData\Local\Temp\2\054170.tmp\system\installResources\install.xml:1230: Unable to remove existing file D:\Rhythmyx\AppServer\server\rx\lib\javax.servlet.jar

The percussion service starts but the content explorer returns an http 500 error and will not display.