Install SQL Server 2008 on Windows 7 Requirements

Since Microsoft has already released Windows 7 for MSDN subscribers, many SQL developers and SQL database administrators are planning to install SQL Server 2008 or MS SQL Server 2005 on Windows 7 client operating systems or on Windows Server 2008 R3 server systems.

But before starting SQL Server 2008 or SQL 2005 installation you must be prepeared with the correct SQL Server setup files.
Have a look at the below screenshot, you will realize what I mean.

Supported SQL Server Versions and Service Pack Levels for Installation on Windows 7

MS SQL Server 2008 R2 CTP3
MS SQL Server 2008 with SP1
MS SQL Server 2005 with SP3

If you click on the "Check for solutions online" button on the Program Compability Assistant message screen, the message details will direct you to download the latest Service Pack download for the related SQL Server version.

Or you can directly download Microsoft SQL Server 2008 SP1 from Microsoft Downloads website.
It is also possible to download Microsoft SQL Server 2005 SP3 from Microsoft Downloads too.

Please read the following blog posts for more information and suggestions on SQL Server setup on Windows 7.
SQL Server 2008 on Windows 7
SQL Server 2008 and SQL 2008 SP1 Merged Setup