Self hosted engine

I'm signed up for the 60 day evaluation but just like ovirt I cannot get self hosted engine to run. Having a separate dedicated engine works fine but I get the exact error on ovirt 3.6/4.0 and rhev 3.6/4.0

Figure I would post here before I give up on the product, hosted-engine --deploy always fails with the following errors

[ INFO ] Creating Image for 'hosted-engine.metadata' ...
[ INFO ] Image for 'hosted-engine.metadata' created successfully
[ ERROR ] Failed to execute stage 'Misc configuration': [Errno 1] Operation not permitted: '/var/run/vdsm/storage/4b488608-b266-4ca3-864e-7784eed0902e/b72508da-fe5a-4ad2-ab04-f2a90fb9bae3'
[ INFO ] Stage: Clean up

and the corresponding lines in the log

2016-08-12 09:22:30 DEBUG otopi.context context._executeMethod:156 method exception
Traceback (most recent call last):
File "/usr/lib/python2.7/site-packages/otopi/context.py", line 146, in _executeMethod
method'method'
File "/usr/share/ovirt-hosted-engine-setup/scripts/../plugins/ovirt-hosted-engine-setup/sanlock/lockspace.py", line 181, in _misc
self.environment[ohostedcons.VDSMEnv.KVM_GID]
OSError: [Errno 1] Operation not permitted: '/var/run/vdsm/storage/4b488608-b266-4ca3-864e-7784eed0902e/b72508da-fe5a-4ad2-ab04-f2a90fb9bae3'
2016-08-12 09:22:30 ERROR otopi.context context._executeMethod:165 Failed to execute stage 'Misc configuration': [Errno 1] Operation not permitted: '/var/run/vdsm/storage/4b488608-b266-4ca3-864e-7784eed0902e/b72508da-fe5a-4ad2-ab04-f2a90fb9bae3'