diff --git a/base/system/services/database.c b/base/system/services/database.c
index d773a44e102..8dbf148d43a 100644
--- a/base/system/services/database.c
+++ b/base/system/services/database.c
@@ -370,7 +370,7 @@ ScmLogonService(
     DPRINT("ScmLogonService(%p %p)\n", pService, pImage);
     DPRINT("Service %S\n", pService->lpServiceName);
 
-    if (ScmIsLocalSystemAccount(pImage->pszAccountName) || ScmLiveSetup)
+    if (ScmIsLocalSystemAccount(pImage->pszAccountName) || ScmLiveSetup || ScmSetupInProgress)
         return ERROR_SUCCESS;
 
     /* Get the user and domain names */
diff --git a/base/system/services/services.c b/base/system/services/services.c
index b45ac07b745..fec54827b87 100644
--- a/base/system/services/services.c
+++ b/base/system/services/services.c
@@ -28,6 +28,7 @@ int WINAPI RegisterServicesProcess(DWORD ServicesProcessId);
 BOOL ScmInitialize = FALSE;
 BOOL ScmShutdown = FALSE;
 BOOL ScmLiveSetup = FALSE;
+BOOL ScmSetupInProgress = FALSE;
 static HANDLE hScmShutdownEvent = NULL;
 static HANDLE hScmSecurityServicesEvent = NULL;
 
@@ -55,6 +56,7 @@ CheckForLiveCD(VOID)
     WCHAR CommandLine[MAX_PATH];
     HKEY hSetupKey;
     DWORD dwSetupType;
+    DWORD dwSetupInProgress;
     DWORD dwType;
     DWORD dwSize;
     DWORD dwError;
@@ -107,6 +109,28 @@ CheckForLiveCD(VOID)
         ScmLiveSetup = TRUE;
     }
 
+    /* Read the SystemSetupInProgress value */
+    dwSize = sizeof(DWORD);
+    dwError = RegQueryValueExW(hSetupKey,
+                               L"SystemSetupInProgress",
+                               NULL,
+                               &dwType,
+                               (LPBYTE)&dwSetupInProgress,
+                               &dwSize);
+    if (dwError != ERROR_SUCCESS ||
+        dwType != REG_DWORD ||
+        dwSize != sizeof(DWORD) ||
+        dwSetupType == 0)
+    {
+        goto done;
+    }
+
+    if (dwSetupInProgress == 1)
+    {
+        DPRINT1("ReactOS Setup currently in progress!\n");
+        ScmSetupInProgress = TRUE;
+    }
+
 done:
     RegCloseKey(hSetupKey);
 
diff --git a/base/system/services/services.h b/base/system/services/services.h
index cbaa4a93329..204375c17c6 100644
--- a/base/system/services/services.h
+++ b/base/system/services/services.h
@@ -102,6 +102,7 @@ extern LIST_ENTRY ImageListHead;
 extern BOOL ScmInitialize;
 extern BOOL ScmShutdown;
 extern BOOL ScmLiveSetup;
+extern BOOL ScmSetupInProgress;
 extern PSECURITY_DESCRIPTOR pPipeSD;