Question : Problem: Will SCOM 2007 "work" with machines not in the active directory?

We're testing systems center operations manager (SCOM) 2007 in anticipation of buying into it.  

We're having a devil of a time getting machines "discovered" in order to be  "agent managed".  Not all our machines are in the active directory(AD), as AD came into play rather recently.   Will the SCOM system discover and manage machines not in AD?  

If so, how?  We've tried to make sure the appropriate entries are in DNS, the etc\hosts of both servers, and by machine name, IP, fully-qualified ...etc.  

Answer : Problem: Will SCOM 2007 "work" with machines not in the active directory?

I believe if you want full "agent managed" capabilities you have to be in AD.  You should be able to run in agentless managed mode, or teat the computers like a network device.  Again the biggest problem you'll probably face is getting the security correct.