As per MS documentation, you are allowed to use Service Manager’s Self-Service portal on top of SPF (SharePoint foundation) 2010. I run through the setup that used to work on SCSM2012 RTM and, for my surprise, run into this:
Bummer! Couldn’t find a workaround. So, had to uninstall SPF, install a full blown SQL 2008 R2 SP2 and the reinstall SPF 2010, SP1, CU,etc.
The portal then installed fine. The documentation is not at all specific about which version of SQL 2008 is needed for the portal to work.