If you try to install Project Server 2007 on Windows Server 2008 with Service Pack 2, the Setup program will give you an error message such as this one:
“The program is blocked due to compatibility issues.”
The solution for this error is the same as the solution for a similar error with SharePoint Server 2007 – you need to slipstream the latest service pack files into your Project Server installation (the SharePoint solution was described by Martin Kearn here.)
To successfully load Project Server 2007 on Windows Server 2008 SP2, follow these steps:
1. Copy Project Server 2007 installation files from the CD to a local directory on your hard drive, such as C:\Project2007.
2. Download Project Server 2007 SP2 files from this location:
Choose the appropriate download for your architecture (32-bit or 64-bit).
3. From the command prompt, extract the update files to a local folder using /extract switch. Example: c:\ProjectServer2007sp2-kb953334-x86-fullfile-en-us.exe /extract:c:\Project2007SP2\
4. Copy the extracted SP2 files to /Updates directory in the Project Server 2007 installation folder on your hard drive.
5. You can now install Project Server 2007 on Windows Server 2008 SP2.
Update: the link above now contains SharePoint 2007 SP2 and it applies for Project Server 2007 as SP2 too, and the command will be: officeserver2007sp2-kb953334-x64-fullfile-en-us.exe /extract:c:\Project2007SP2\