No it's not. In fact, MSI packages are extremely easy to deploy with SMS 2003. When you want to create a new package from an MSI, just rightclick on the Packages container as select from the tasks menu something that says, "Create package from program OR Create program from package" (i'm not in the office now so I don't have the exact syntax.)

When you do this, a wizard will appear and it will walk you through the programm creation. SMS will discover several canned Programs from the MSI, which will cut several steps out of the process, including the syntax modifications of the text string you referenced.
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let the wise listen and add to their learning,
and let the discerning get guidance- Proverbs 1:5