While setting up a SCOM 2007 deployment to do some testing from 2007 to 2012 I came across some annoying as F issues, this is what I did to clear the logs. If more pop up I shall append to this post.
The first hurdle with installing SCOM 2007 I came across was the default database not installing. The workaround is in the toolkit on the install disk/iso under SupportToolsAMD64DBCreateWizard.exe . This will walk you through setup of the Database. Once that is done rerun the installation tool and you should be good to go.
The next bump in the road was what looked to be a common issue where you get a periodic event in the Operation Manger event log with ID 11464, even after I thought I had created the SCOM AD SCP correctly. For some reason the SDKServiceSCP was not being created. Creating that manually using ADSIEdit solved that WTF.
For some reason the permissions on the OperationsManager container where also screwed up, adding the SCOMAdmin group resolved that tidily.
Of course I had to remember to restart the HealthService (net stop HealthService && net start HealthService) each time otherwise you will wait around an hour to see if the error has been eradicated.