Problem:

I’ve tried doing an In-Place upgrade of SMS 2003 to ConfigMgr but it gets part way through the process then displays a Fatal Error dialog box stating:

Configuration Manager Setup cannot continue because of the following error: Setup cannot upgrade the 
ConfigMgr database. Contact your SQL administrator.

If I look in the ConfigMgrSetup.log it states:

***SqlError: [42000][2812][Microsoft][ODBC SQL Server Driver][SQL Server]Could not find stored procedure
‘master..xp_SMS_notification’. : SMSDBMON_SiteControl_ins
Cannot insert the default site control image to the database.
***SqlError: [42000][2812][Microsoft][ODBC SQL Server Driver][SQL Server]Could not find stored procedure 
‘master..xp_SMS_notification’. : SMSDBMON_Sites_ins
Cannot initialize the sites table in the database.
Setup has encountered fatal errors while installing SMS services.

Resolution:

This is a known issue as detailed in Microsoft Knowledge Base Article 556084 “xp_SMS_notification not found when Upgrade from SMS 2003 to SCCM 2007

http://support.microsoft.com/kb/556084/en-us

UPDATE

After manually creating the Stored Procedure and re-attmepting the upgrade it failed at the same point. To get around this:

  1. Create the SP as per the KB above.
  2. Start the upgrade process.
  3. In SQL Management Studio monitor the SP – the Setup process will delete it.
  4. Once Setup has deleted the SP re-create it again paying SPECIAL attention that you actually browse to the location where the “smsxp.dll” is rather than just typing “smsxp.dll” in the location field next to the “DLL” field.
  5. Do this and Setup will be happy.

Bit bizarre why the upgrade process deletes a SP that it later relies on.