I recently undertook my first SP1 installation. To keep it safe, I started by upgrading one of my Virtual PC development environments. In this case, I had a single server with MOSS, Visual Studio, and Office. The environment was a very clean install. Others who had environments that were upgraded from SPS2003 or used extensive customizations have reported problems.
The detailed upgrade steps can be found here. Before attempting an upgrade to a production farm, read the article, and plan, plan, plan the upgrade. Below is a summary of what worked for me in my VPC development environment.
Get the Required Software
Perform the Upgrade
1. Uninstall the Office SharePoint Server 2007 SDK and ECM Starter Kit
This is the old SDK. It also contains the project templates for workflow, so we want to use the new ones from the new SDK.
You can also uninstall VS 2005 at this point, if you want to upgrade to VS 2008. Alternatively, you can leave VS 2005 in place and run VS 2008 in parallel with no issues.
2. Execute WSS SP1 on each server in the farm
The SP1 binaries must be installed on every server in the farm before you complete the upgrade on any one server. That means you have to run the SP install up to the point where you see this message on each server.
3. Execute MOSS SP1 on each server in the farm
Same issue here with the SP1 binaries.
4. Check the upgrade log
Look in the LOGS folder and open the file UPGRADE.LOG. Verify that you have the following entry:
Finished upgrading SPFarm Name=<Name of Configuration Database>
In-place upgrade session finishes. Root object = SPFarm=<Name of Configuration Database>, recursive = True. 0 errors and 0 warnings encountered.
5. Install the MOSS SDK 1.2
No reason to install the WSS SDK, just MOSS.
6. Execute the Office 2007 SP1
7. Execute the SharePoint Designer SP1