If you do the following:

1) Install the SM Management Server RTM

2) Upgrade the Management Server to SP1

3) Try to install the SP1 portals

the setup will block you.  This is kind of annoying!

 

Here is how you workaround it…. (do at your own risk)

1) Backup the encryption key – there is a utility on the CD image in the Tools folder.  Instructions

2) Uninstall the management server.

3) Restore the encryption key using the same utility. Instructions

4) Install the management server again and point to the existing database

5) Install the portal – It works! :)