There was a fix released back in September that got ConfigMgr 2007 working with SQL Server 2008, http://support.microsoft.com/kb/955229. I also had a post earlier today, ConfigMgr hotfix for driver issues when using SQL Server 2008, to address driver issues.
Now today I see that there is another new SQL Server 2008-related hotfix for ConfigMgr, this one fixing problems introduced by the original fix, KB 955229.
So if you are using SQL Server 2008, please check these out. With any luck all of these fixes will be in ConfigMgr 2007 SP2, with the beta of that due out in the coming weeks. Since that will add full support for Windows 7 deployment, that’s what you all really need anyway :-)