I am installing Exch 2007 B2 in a test environment. Currently there is no Exchange organization (or servers, obviously) in this test environment. From the message and all that I can find it appears that it wants to see an Exchange organization, meaning installing Exchange 2003 first. Is this true? You cannot just have Exchange 2007 be the first server in an Exchange org?? Thanks . . .

Have you tried the steps suggested in this thread? http://forums.microsoft.com/TechNet/ShowPost.aspx?PostID=957033&SiteID=17

Your domain functional level must be windows 200 native or windows 2003. You don't require exch 2003 at all.The first exchange 2007 role should be hub transport and client access.Once they are installed you can install mailbox roles. Where is it failing...........pre-reqs or installation ?