I used the following setup for the SCSM installation: 1 Service Manager Management Server 1 SQL Server for the Service Manager Database and Sharepoint Database 1 server for the Self Service Portal (Web content and Webparts) using Sharepoint Foundation
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Read the complete post at http://scug.be/blogs/valerie/archive/2011/12/01/scsm-2012-ssp-setup-crashes-when-selecting-service-manager-database.aspx