I was working on configuration settings for MS SSO service in MOSS. I think following information may also be useful for you.
You need to perform following simple steps for configuration of MS SSO Service.
1. Configure log on account to administrator user and run Microsoft Single Sign On Service.
2. Go to CentralAdministration->Operations->SecurityConfiguration->ManageSingleSignOn Serice.
3. Configure single sign on using available links i.e. Manage Server Settings, Manage Encrption Key, Manage Setting for enterprise application definition, Manage account information for enterprise application definition
For details please see following link