When you are installing SharePoint on a single machine, we usually simulare a 2 server farm environment by choosing "Complete" and then in the Products and Configuration Wizard, we put in the local administrator username as "Workgroup\Username" and it just goes through fine, basically we were able to cheat SharePoint 2007 to consider the same machine as 2 machines!
Not with SH 2010, SH 2010 "Complete" installation, during the products configuration wizard, does not allow you to enter a workgroup administrator, it definitely requires a domain account!
Which means, if you need to have SH 2010 installed on a single machine, either the machine needs to be a Domain Controller with Active Directory hosted or you need to just use the inbuilt database installation.
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