The latest version of this guide can always be found at http://www.windows-n...ws-server-2008/
In a production environment please consult Technet for best practise, see below links:
Prerequisites:
Prerequisites for Installing Configuration Manager
Configuration:
System Center Configuration Manager 2007
How to Configure Windows Server 2008 for Site Systems
Best Practices:
Configuring Configuration Manager Sites for Best Performance
Checklist for Security Best Practices
Best Practices for Central and Primary Site Hardware and Software Configuration
Best Practices for Operating System Deployment
This guide assumes that you have first setup Windows Server 2008 and configured it for Active Directory, with DHCP (you only need steps 1 and 2 this guide). If you want to deploy operating systems within SCCM you will then also need the Windows Deployment Services installed, and that is covered in steps 3 and 4 of this guide).
You must have installed and configured IIS (for SCCM) and installed SQL Server 2005 SP2 (or SQL Server 2008 with this hotfix) and WSUS (you can install WSUS later if you want, it's only required for the SUP role).
Please note: WSUS SP2 is a role within Server 2008 R2 so if you are using Server 2008 R2 you can install WSUS Sp2 by adding the role.
If you are thinking about hosting SQL Server on another server than the SCCM server then please read this post.
You should also read the SCCM prerequisites on Technet.
We will be using the MSDN version of SCCM 2007 Sp1 namely en_system_center_configuration_manager_2007_with_service_pack_1_x86_dvd_x14-66461.iso so burn it to DVD or mount it in Daemon tools (or similar).
Part 1. Run the prerequisite checker and fix the warnings/errors.
When the menu appears, click on Run the prerequisite checker, we'll do this to see if our Windows Server 2008 needs any additional tasks performed prior to installing SCCM 2007 sp1.

enter your servername as below (leave OUT the instance name or you may get errors explained in the Final Note)

this gave me two prerequisites which needed looking at, the AD Schema extensions, Microsoft Remote Differential compression.

If you want to get more details of the problems identified, then check c:\ConfigMgrPrereq.log (and c:\ConfigMgrSetup.log) or double click each warning/error in turn to get a short description (scrollable) of the problem.
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My first problem was that I needed to extend the Active directory schema, to do so I followed this guide.
Once I had extended the active directory schema, I ran the prerequisite checker again,
That left me with the RDC error,
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That led me here and that in turn had this info
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Site servers and branch distribution points require Remote Differential Compression (RDC) to generate package signatures and perform signature comparison. RDC is not installed by default on computers running Windows Server 2008.
To add Remote Differential Compression to site servers and branch distribution points
In Server Manager, on the Features node, start the Add Features Wizard.

On the Select Features page, select Remote Differential Compression, and then click Next.

Complete the rest of the wizard by clicking install then close.

Now run the prerequisite checker again and the RDC error should be gone

Once you have no warnings or errors, please proceed to Part 2.
Final Note: if you entered the instance name at the start of this guide, you may get an error which states
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The Technet page for Setup Prerequisite checks states:-
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