I have been facing a silly problem for the last few days that had me pretty stumped, however, I found the work around on Stefan Stranger's Blog where he posted the following article: SCOM 2007 full RTM on MVLS.

The Procedure I followed:
1. Insert the RTM or MVLS media in the SCOM Server
2. Browse the CD
3. Goto: SupportTools\i386 (or AMD64)
4. Run LicensingWizard.msi

and voila! your SCOM is licensed, with no requirement of Service Restart or Server Reboot!
(Just as Stefan Said, Thanks man!)