After I completed the MOSS development training in Barrie there was a request to a checklist to setup a MOSS development environment. Here are the steps:

1. Configure a virtual PC machine with at lease 1GB memory allocated
2. Install windows 2003 Server standard edition on the virtual PC (You may also go for enterprise edition, but because of some unnecessary services on enterprise edition it will perform slower than enterprise edition while it doesn't give you anything extra for MOSS development)
3. Go to windows Control panel and Add/remove windows component:
   1. Add ASP .NET (as a result of this selection any necessary IIS component will be installed)
   2. Add local SMTP server
   3. Make sure FrontPage server extension is not selected
   4. Remove "Internet Explorer Enhanced Security Configuration". It is not a MUST, but for development environment that we need absolute freedom, it is quite annoying.
4. Install the latest service pack available for windows 2003. (it is still too early to go for windows component update)
5. Install Visual Studio .NET 2005 (Professional or VSTS) and make sure you Install C# components (VB .NET is not enough) and make sure you UNCHECK the SQL Server express edition that comes as embedded component in Visual Studio .NET.
6. Install Visual Studio .NET Service pack 1.0
7. Install .NET Framework 3.0
8. Install MOSS 2007 as stand alone installation with all default settings
9. Install "Visual Studio 2005 extensions for .NET Framework 3.0 (Windows Workflow Foundation)"
10. Install MOSS 2007 SDK
11. Install Windows SharePoint Services 3.0 Tools: Visual Studio 2005 Extensions
12. Install Microsoft Office 2007 (InfoPath, Outlook, Word, PowerPoint, Access and Excel are mandatory). You may uncheck Microsoft Publisher, Microsoft Groove and One Note.
13. Install Microsoft SharePoint designer 2007
14. Install VSTO
15. Connect the Virtual PC to Internet and run Windows Update
16. Read this and install all the components mentioned there.

Have fun
Alireza