[ConfigMgr 2007] Error “The WebDAV server extension is either not installed or not configured properly” in Configuration Manager 2007
If you're seeing this issue then the following post from The Configuration Manager Support Team Blog should help : We have seen couple of cases on this issue here in product support recently and since I didn't see the information documented on
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Read the complete post at http://myitforum.com/cs2/blogs/chobbs/archive/2010/10/27/configmgr-2007-error-the-webdav-server-extension-is-either-not-installed-or-not-configured-properly-in-configuration-manager-2007.aspx