Download
You can find the SMD Agent installations files at:
Go to: "Support Packages and Patches" -> "Browse our Download Catalog" -> "SAP Technology Components" -> "SAP SOLUTION MANAGER" -> "SAP SOLUTION MANAGER 7.0 EHP 1" ->
"Entry by Component" -> "Agents for managed systems"
Extraction of .SAR with SAPCAR
1. Open a prompt screen.
2. Navigate to the .SAR path.
3. Run command "sapcar -xvf <filename>
Installation Process
1. Launch SAPInst from the SMD Agent installation files. You will see a page like this: 
2. Select option “Diagnostics Agent” at:
Solution Manager Diagnostics Agent -> Installation Options -> Standalone Engines -> Diagnostics agent in SAP Solution Manager -> “Diagnostics Agent”.

To start the installation, choose “Next”.
3. Define parameters:
Choose the host name for the SMD Agent.
For more information about the input parameters, place the cursor on the relevant field and press F1 in SAPinst.

Then click “Next” to continue.
4. Choose the SMD Agent SID and the destination driver.

Then click “Next” to continue.
5. Specify the path for the "JCE Unlimited Strength Jurisdiction Policy" files. Note that you must NOT unzip the archive.
For more information about how to download them check SAP Note 1240081.

Then click “Next” to continue.
6. Choose the Domain where you want to install the SMD Agent. This step will create the system accounts for the SMD Agent.

Then click “Next” to continue.
7. Choose the passwords for the created user.

Then click “Next” to continue.
8. Choose the path for the Self-check file and click “Next”.

Then click “Next” to continue.
9. Choose the Instance Number for the SMD Agent.

Then click “Next” to continue.
10. Agent registration:
At this step you can choose two options:
a. Register in existing central SLD: registers the SMD Agent to a productive SLD. This is the recommended option starting with Solution Manager 7.1.
b. No SLD registration: connects directly to the Solution Manager's P4 port. Using this type of connection no SLD attachment is necessary, neither the link "Agent Candidates Management" needs to be used in the "Agent Administration".
10.1. Register in existing central SLD:
a. Fill up the SLD connections parameters.
You need to specify the SLD HTTP Host, SLD HTTP Port, SLD Data Supplier User and the password of SLD Data Supplier User. 
Then click “Next” to continue.
b. Choose the SMD Agent connection type. Recommended is “P4 Connection via SCS message server”.
For more information about the type of connection, place the cursor on the relevant field and press F1 in SAPinst. 
Then click “Next” to continue.
c. Specify the connection information.

Then click “Next” to continue.
If you have done the SLD registration. After you finish the installation of the SMD agent, you will also need to attach it to the Solution Manager. This procedure is described here:
10.2. No SLD Registration
a. Specify the connection information.

Then click “Next” to continue.
11. Now the “Summary” page is displayed. At this step you can revise the entire configuration entered so far. To change any of the configuration, select the item(s) to review and then click at “Revise”.

12. Now the installation will be performed:

13. After some time the installation will finish.

Congratulations, you have just installed the SMD Agent successfully.
Comments (5)
Sep 29, 2011
Lillian Mao says:
hi, Thanks for the info. Just want to know which file to download as the...hi,
Thanks for the info. Just want to know which file to download as there is lots of files to select. Also, right now there is some filed marked to deploy only, does it mean that we can just install by using JSPM and then using solman_setup to config it?
Thanks
Lillian
Sep 29, 2011
Guilherme Balbinot says:
Hello Lillian, With EHP1 use the latest agent available, 7.20. Deploy with JS...Hello Lillian,
With EHP1 use the latest agent available, 7.20.
Deploy with JSPM and solman_setup will configure it.
More information is available here:
http://wiki.sdn.sap.com/wiki/display/SM/FAQ+Root+Cause+Analysis#FAQRootCauseAnalysis-WhatisthecorrectSMDversiontoinstall%3FIsitnecessarytoupgradetheSMDAgentaccordingtotheSolutionManagerSP%3F
Jan 25, 2012
Mahesh Rangaraddi says:
Thanks.. document is very useful. I installed SMD 730 (solution manager 7...Thanks..
document is very useful.
I installed SMD 730 (solution manager 7.1) successfully :)
Regards,
Mahesh
Dec 05
Philip Kisloff says:
Point 10. Register with existing SLD ios now recommended!Point 10. Register with existing SLD ios now recommended!
Dec 05
Guilherme Balbinot says:
Hi Philip, thank you for your comment, I've corrected the information in point 1...Hi Philip, thank you for your comment, I've corrected the information in point 10.