Upgrading the Windows AIK before upgrading to Configuration Manager 2007 SP1
Before beginning the upgrade process to Configuration Manager 2007 SP1, the Windows AIK 1.0 should be uninstalled from the SMS Provider computer for the site to allow SP1 Setup to install Windows AIK 1.1 to support SP1 OSD WIM images.
If the Windows AIK 1.0 is not uninstalled prior to beginning SP1 Setup, and a PXE service point is installed in the site running the Windows Deployment Services (WDS) Server service, the upgrade might fail and result in an unexpected restart and post-upgrade SMS Executive service crashes.
The following information has been added to the documentation libary for Configuration Manager 2007, but we won't be able to publish it to the Web until we refresh the documentation libary when Configuration Manager 2007 R2 is released. In the meantime, I'm making this post to give you the information that you need to successfully upgrade Configuration Manager 2007 sites to SP1 and troubleshoot an issue that you might encounter.(continue at source)