A few days ago I decided to upgrade my virtual machine with PPS (Business Intelligence VPC Release 6).
Firstly I decided to upgrade my client components for Monitoring and Planning modules.
So, I run two files from SP1 installation package:
• PBMCli.msp - for upgrading PerformancePoint Planning Business Modeler
• PPLXCli .msp - for upgrading PerformancePoint Add-in for Excel

All installation processes were succesfuly finished.
My another step was attempting to upgrade my PPS server components, so I used another two installation files:
• PPLSrv.msp - for upgrading server-side components of PerformancePoint Planning
• PSCSrv.msp - for upgrading server-side components of PerformancePoint Monitoring

And during both installation steps I received an error presented below:
„Failed package requirement analysis, please refer to the log file for more information.”

I reviewed log files and server’s event log, but I didn’t find any additional information.

The reason of this error was that my virtual machine were running in domain controller mode.

To install PerformancePoint Server on domain controllers you need to use some additional settings while running installation (SKIPOSCHECK=true in command line).

More details about installing PerformancePoint Server on DC you will find in this article:

http://bimvp.com/blogs/bsm/archive/2008/04/23/installing-pps-on-a-domain-controller.aspx

The same restriction concerns to SP1 for PerformancePoint Server.

If you want to upgrade your PerformancePoint Server installed on domain controller, you need to run setup from command line with parameter SKIPOSCHECK=True.

Install the Planning server MSP using this command line:

PPLSrv.msp SKIPOSCHECK=true  

Install the Monitoring server MSP using this command line:

PSCSrv.msp SKIPOSCHECK=true  

After using above commands installing SP1 on my demo environment (Business Intelligence  VPC Release 6) was successful.

And please note that installing PerformancePoint Server 2007 on domain controllers
is not supported and should be done only for demo purposes.