App-V Streaming with SCCM Distribution Point
By default, Configuration Manager 2007 distribution points are not enabled to stream virtual application packages. If you plan to stream virtual application packages to Configuration Manager 2007 clients, you must enable the distribution point for streaming virtual application packages. Configuration Manager 2007 clients will access and run virtual applications from their assigned application virtualization enabled distribution point.
I already explained how to do this in my previous posts:
When I ran a Streamed App-V Package I got this error on my client:

I Checked to see if my App was distributed to the DP’s:

So my sources where distributed to the DP….But when I checked my status messages I found this one:

In the distribution manager status messages I found this error:

With in the description:
Possible cause: Distribution Manager requires that IIS base components be installed on the local SMS Site Server in order to create the virtual directory. Distribution Manager also requires that IIS Web Services be installed on the Distribution Point Server that needs to support Background Intelligent Transfer Service (BITS).
Solution: Verify that IIS base components are installed on the local SMS Site Server, and IIS Web Services are installed on the Distribution Point Server.
The DP site system was not configured properly.
You can find the procedure How to Configure Windows Server 2008 for Configuration Manager 2007 Site Systems here:
http://technet.microsoft.com/en-us/library/cc431377.aspx#RDC_for_Site_Servers
After reconfiguring the site system all errors were resolved and the App-V package worked.
Keep It Clean!
Lars Verbist
Twitter:@LarsVerbist