Hi Raj,
Please crosscheck your Technical System in LMDB.
Generally product details are contained in table SWFEATURE and PRDVERS.
Please check these above mentioned tables using TA SE16 in your system(which you want to upgrade)
You can delete the entry for SAP SOLUTION MANAGER 7.0 EHP 1 from LMDB technical system.
Creating logical system and solution is not always mandatory(In SOLMAN 710 SPS05 or higher) if you are running standard products of SAP(Unless you have modified something as per standard software logistics.)
As soon as you will create new product system you will get option of "create transaction" to launch MOPZ.
In addition to that please check thread
http://scn.sap.com/message/14290463
Regards,
Surojit