This came up in a discussion last week and I could see this being an issue for many customers in Higher Education. When MOM 2005 sends alerts via Email to attempts to authenticate using NTLM. If NTLM is not available or if the server is set to relay anonymously the message fails to send.
This support article describes a registry key to send the Email without requiring authentication.
The latest version of MOM 2005 Resource Kit - now available for download! The newest version includes several exciting updates, including a new Power Toy -
Alert to RSS Utility: Now subscribe to alerts via RSS!
Besides being able to capture alerts in a newsreader, this extends how developers can capture MOM alerts and integrate them in to other applications.
There are a number of other great new tools check out the full description at: http://www.microsoft.com/mom/downloads/2005/reskit/default.mspx
This question comes up fairly often and since I will be part of a discussion on this topic tomorrow, I'll post documentation while I have the links handy.
Installing SharePoint Portal Server 2003 on a Server with Windows SharePoint Services
This document covers how to do either an in place upgrade or migration to a new server. Either is possible, making the existing WSS server part of the new Portal server or migrating content to a new site. If resources are available, it appears migration is the way to go. Tools are available to assist with this process. Check out the section titled "Migration Considerations".
Migrating from WMSDE to SQL Server
If you were running WSS over MSDE, this document provides information on how to upgrade or migrate to SQL.
In case you didn't see it last week, SMS 2003 SP2 has been released. I'm anxious to get a new test server setup this evening, using SQL 2005!!!