I ran into an issue tonight when I was trying to build a Softgrid demo. I loaded up a VM Workstation with Windows Server 2003 with SP2, but when I ran the Softgrid install, it did not install the Softgrid Management Console. After doing some searching on the web, I found an article on The Softgrid Team Blog that addressed the issue, and the comments were especially helpful. The problem stems from the Softgrid Management Console requiring MMC 3.0, which is already included in SP2 for Windows Server 2003 and the Softgrid installation does not properly detect that it's already there. This is supposed to be fixed in SP1 for Softgrid 4.1 which is due out Q2 of 2007. So until then, you either need to just manage your Softgrid server from a workstation, or you can edit the MSI with Orca to make it properly detect MMC 3.0, which I will walk you through in this article.
Orca comes with the Microsoft Windows SDK, which you can download from here if you don't have it already. Once you get it installed, make a copy of \Installers\Server\Softgrid Virtual Application Server.msi from the Softgrid source files because if we're going to do an edit on a file, we're going to do it on the copy, right?
Once the file is open, you will see the table in the MSI listed on the left. Click on the Condition table and the Release_SoftGrid_Management_Console condition will be displayed on the right-hand pane. Notice that the value for this condition is ((VersionNT = 501 And ServicePackLevel = 2) Or (VersionNT = 502 And ServicePackLevel = 1)); you need to click on it and add a greater than sign to the end like this: >= 1)). Here's a screen shot of what it should look like:
Now save the file and close Orca, and when you run the Softgrid install it will include the Softgrid Management Console as it will evaluate SP2 as greater than or equal to SP1.
Source: The Softgrid Team Blog