SharePoint installation with non domain or local accounts is possible

Here is command -  New-SPConfigurationDatabase allows you to specify none domain credentials for the farm.

Read this for full details read this
They say this can be done in SP 2007 some other way, really?

Suggested practice from MS is here

Other Links to Install SharePoint

SharePoint 2010 – Installation & Deployment:   
Planning a SQL Server Installation:
How to Install SQL Server 2008 R2:
Deploy a single server with SQL Server (SharePoint Server 2010)
Configure services (SharePoint Server 2010)
Installing SharePoint 2010 on Windows 2008 Server R2