SQL Server Failover cluster installation fails `RequireKerberos` to value '1'
Finally found the a solution online which lead me to the actual solution of the problem. 

Apparently it is an issue with SQL Server 2008 and installing the Service Pack is the answer to this. How can we install a service pack while installing the application: 

See this article Slipstream Service Packs and Cumulative Updates on a SQL Server 2008 Installation by Edwin Sarmiento. 

I tried to install the Service Pack 1 but it failed with a different error messages:


  The installed language for the SQL_Engine_Core_Inst feature is
  inconsistent between the nodes of the cluster. To cluster an instance,
  the language of the instance on each node must be the same.


for me details about the error message read this article FIX: You cannot add a node to a SQL Server 2008 cluster by running the Setup program if there are multiple instances of different languages installed on the same node

I used the method suggested by Edwin Sarmiento but installed SQL Server 2008 Server Pack 4 and wala it worked. 

Had to do a lot of reading and tried a lot of different methods to fix it, thought it will be nice to share it with you guys. 

cheers thank you.