If you are performing Gradual Upgrade, then you will be performing PreScann two times.
First when you are install MOSS in Gradual Upgrade mode. You will need to run the PreScan tool after you install the MOSS binaries, but before you continue with Configuration Wizard.
Next you will continue with the wizard and finish your MOSS environment configuration.
(This will be the second time you will need to run the prescan, lets call this targeted PreScan) At this stage you can run prescan against your SPS 2003 portal to be upgraded. Say your SPS 2003 portal is at default port 80. Then your syntax would be:
Prescan.exe /C PRESCANCONFIG.XML /V ">http://<YourServerName>
Once you installed MOSS, you will be initiating your Gradual Upgrade by going to MOSS Central Admin>Operations>Upgrade and Content Migration>Site Upgrade Status. For the first time you will need to set application settings for serving your existing SPS 2003 Virtual Server to a different Port/HostHeader, while the gradual upgrade MOSS application will take over current IIS Site/Port/Host header. Say you set the Port number 8080 for this setting, this will push the SPS 2003 Virtual server to be hosted at :8080">http://<YourServerName>:8080
At this stage your SPS Virtual server will be listed under "Site Upgrade Status" option, with "Continue Upgrade" If you have not ran the Targeted PreScan earlier, you will be attempting to run the prescan as below:
Prescan.exe /C PRESCANCONFIG.XML /V ">http://<YourServerName>
You will see this below strage error reported from PreScan log:
Skipping virtual server: http://YourServerName/. Server state = NotAdministrable. Most likely this virtual server is not extended with WSS v2.
The reason for this stranger message is that since you already set the SPS 2003 Virtual server to be serviced from a new Port number (8080), your default port (80) is now extended by WSS v3 in preparation for Gradual Upgrade.
So your syntax for PreScan in this case would be:
Prescan.exe /C PRESCANCONFIG.XML /V http://%3cyourservername%3e:8080/
Which now points to SPS 2003, which is WSS v2 extended.
Happy PreScanning!!!