I got this from an internal document on how to install PPS on the same machine that has Active Directory installed.
Running PerformancePoint Server 2007 on a domain controller is not an advised production scenario and is not a supported scenario. This is why the installer blocks the install of PerformancePoint Server 2007 on domain controllers.
There is a command line parameter that will allow the PerformancePoint Server 2007 to install and configure on a domain controller. There are some manual steps to be complete before installation and configuration.
Installing PerformancePoint Planning Server on a Domain Controller
1. You MUST create a new domain account for the Planning Service Identity. You cannot use the domain administrator account as the Service Identity.
2. Using Start\Administrators\Active Directory Users and Computers:
a. Create a new domain account, e.g. DOMAIN\PlanningSI
b. Add it to the Domain Administrators group
c. Add it to the IIS_WPG group
3. Open Start\Administrative Tools\Domain Controller Security Policy
a. Under Local Policies\User Rights Assignment:
i. Grant PlanningSI the â€œLog on as a batch jobâ€ right
ii. Grant PlanningSI the â€œLog on as a serviceâ€ right
4. Install the Planning server MSI using this command line:
a. msiexec /i PPLSrv.msi SKIPOSCHECK=true
5. In the Configuration Wizard, specify the domain account created above as the SI account
Installing PerformancePoint Monitoring Server on a Domain Controller
1. If you are using a domain account, you must add it to the Administrators and IIS_WPG groups before installing the Monitoring Server. You donâ€™t need to do this if using Network Service (recommended).
2. To add a domain account to the appropriate groups: Use Start\Administrators\Active Directory Users and Computers:
a. Add it to the Domain Administrators group
b. Add it to the IIS_WPG group
3. Install the Monitoring server MSI using this command line:
a. msiexec /i PscSrv.msi SKIPOSCHECK=true