I am using the local system account to run all of the services, however they won't start. My belief is that since this is vCenter 5.1 there services won't start unless SSO is able to connect to Active Directory.
Using the vCenter appliance is not applicable because the purpose of this lab is to test patching to our production vCenter 5.1 server.
Are you certain that SSO isn't causing the problem and that the problem is ultimately that AD is not available in the lab?