Peter,

Try the following from Novell's Knowledge Base, Tecnical Information Document 
2944976:

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SMS Group Object is corrupt improperly configured.
SMS Group Object is corrupt improperly configured.

There may be circumstances where the SMS Group Object is created without the 
administrator having the opportunity to define the Context. 

Solutions 
To recreate the object, do the following:

First, if TSA500 has been loaded, it will need to be unloaded. In some cases, 
SMDR may have not loaded at all, but, if it is in memory, it will need to be 
unloaded before executing SMDR NEW at the console. The configuration prompts 
for SMDR are as follows:

       SMDR Configuration Screen

Default SMDR Group container context OU=MyOU.O=MyOrg

Press enter for using default context/enter the new container context
SMDR Group Context: 

<Press enter for default or enter the desired context. for example, enter 
.o=MyOrg for the Organization "MyOrg">

Default SMDR Context OU=MyOu.O=MyOrg

Press enter for using default context/enter the new context
SMDR Context: <press enter the second time for the default or typically, enter 
the same context again>

Enter the user name(full context) that has managing rights

Example: .CN=Admin.OU=sms.O=MyOrgl
Username: .admin.MyOrg
Password: <enter the admin password>

SMDR will load with no messages.

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Make sure user .xxxxxxxx.yyyy is a member of the SMDR Group.
Make sure user .xxxxxxxx.yyyy is a member of the SMDR Group.

Good Luck,

John Underdown