We have seen couple of cases on this issue here in product support recently and since I didn’t see the information documented on our site anywhere I thought it would be worth a mention here.

Issue:

The SMS Site Component Manager fails to install the SMS_MP_CONTROL_MANAGER component on a Windows Server 2008 based computer.  The error is as follows:

The WebDAV server extension is either not installed or not configured properly.
Solution: Make sure WebDAV is installed and enabled. Make sure there is an authoring rule that allow “All users” read access to “All content”. Make sure the WebDAV settings “Allow anonymous property queries” and “Allow property queries with infinite depth” are set to “true” and “Allow Custom Properties” is set to false.

If you go to the IIS management console, connect to the local server and open the “WebDAV Authoring Rules” option you will find everything enabled but it still doesn’t seem to recognize it.

Cause:

This can occur if the settings for the WebDAV Authoring Rules become out of sync with the WebDAV_schema.xml file.

Resolution:

Read the full post here.