When I tried installing SharePoint 2007 in Windows server 2008 R2, I got this error "This program is blocked due to compatibility issues"
This is because: SharePoint 2007 is not compatible with Windows Sever 2008 R2. We need to download the service pack and merge with SharePoint Installers, then run the setup again!
Here is what you have to do to resolve this error:
Get the updates from this URL:
1. Download WSS and MOSS SP2 patches
Windows SharePoint Services 3.0 Service Pack 2 (SP2) - English
The 2007 Microsoft Office Servers Service Pack 2 (SP2)
2. Extract both the SharePoint SP2 pack with this command and save in the “Updates” folder inside the MOSS binary location, like “c:\MOSS_setup\updates
3. Delete Wsssetup.dll from the "Updates" folder, this is important. Otherwise only WSS SP2 will be installed. Now run the setup.exe
More details can be found on TechNet. http://technet.microsoft.com/en-us/library/cc261890.aspx
KB article describes the issue with workaround: http://support.microsoft.com/kb/962935
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