SMS 2003 - Problems setting up with remote SQL Server

Been banging my head against this one all morning. We just installed SMS 2003 on a new Win 2003 SP1 box. Our SQL Server is sitting on a separate Win2k box. The SMS Server keeps complaining about the installation of the SQL Monitor. It complained in the Site Status -> Site Name -> Component Status -> SMS_SITE_COMPONENT_MANAGER logs with the following entry:

Could not read registry key "HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\SMS" on computer ROCKYPT. The operating system reported error 997: Overlapped I/O operation is in progress.

Looks like 2003 SP1 won't work with Advanced Security setup see MS KB: http://support.microsoft.com/kb/906570 and http://support.microsoft.com/kb/906570/. After installing 2003 SP2 on the SMS Server, it was able to install the SQL Monitor just fine. Got a different error because SQL Server didn't publish its SPN, but I'll take care of that later...