I'm trying to send a Package from a ConfigMgr SP1 BITS-enabled DP running on Windows 2008 to SMS 2003 Clients but it fails. If I look in the Smsts.log I see the following:

Initializing HTTP transport.
Error. Status code 207
The DAV response doesn't contain any "a:response" item.
Hash could not be matched for the downloaded content.
Boot Image package not found. The hash value is not correct. (Error: 80091007; Source: Windows)

Contributed By: Cliff Hobbs [MVP ConfigMgr]
This is a known problem as documented in Microsoft KB article 945635 "Systems Management Server 2003 clients cannot download a software package from a BITS-enabled Configuration Manager 2007 Service Pack 1 distribution point on a Windows Server 2008-based computer".