Configuration Manager 2007 support for the different SQL Server versions:
SQL Server 2005:
- ConfigMgr RTM and SP1 support SQL 2005 SP2 and SP3. Currently, no hotfix is required.
- ConfigMgr R2 supports SQL 2005 SP2 and SP3, with hotfix 959975.
SQL Server 2008:
- ConfigMgr RTM supports upgrading an existing SQL 2005 site database to SQL 2008, with hotfix 955229; but does not support new installation using a SQL 2008 instance to host the site database.
- ConfigMgr SP1 supports SQL 2008, with hotfix 955262.
- ConfigMgr R2 supports SQL 2008, with hotfix 957576 and 959975
More information can be found at http://blogs.technet.com/configmgrteam/archive/2009/03/03/configuration-manager-2007-supported-sql-versions.aspx