While the installation of SMTP is needed for this installation of system management tools. The requirement states that IIS is required. By selecting Internet Information Services from the add/remove windows components wizard, SMTP is automatically included with the IIS installation. Step 4 should read -
Under Before you begin 4. Install IIS version 6.0 or higher on the workstation.
I just followed these instructions, including the suggestion to install IIS instead of SMTP in and it worked.
The instructions 1, 2 and 3 under Procedure are repeated and only need to be done once.