Input: A read-only array of N elements containing integer values from 1 to N (some integer values can appear more than once!). And a memory zone of a fixed<
This is impossible to do in O(1) space, at least with a single-scan algorithm.
Proof
Suppose you have processed N/2 of the N elements. Assuming the sequence is a permutation then, given the state of the algorithm, you should be able to figure out the set of N/2 remaining elements. If you can't figure out the remaining elements, then the algorithm can be fooled by repeating some of the old elements.
There are N choose N/2 possible remaining sets. Each of them must be represented by a distinct internal state of the algorithm, because otherwise you couldn't figure out the remaining elements. However, it takes logarithmic space to store X states, so it takes BigTheta(log(N choose N/2)) space to store N choose N/2 states. That values grows with N, and therefore the algorithm's internal state can not fit in O(1) space.
More Formal Proof
You want to create a program P which, given the final N/2 elements and the internal state of the linear-time-constant-space algorithm after it has processed N/2 elements, determines if the entire sequence is a permutation of 1..N. There is no time or space bound on this secondary program.
Assuming P exists we can create a program Q, taking only the internal state of the linear-time-constant-space algorithm, which determines the necessary final N/2 elements of the sequence (if it was a permutation). Q works by passing P every possible final N/2 elements and returning the set for which P returns true.
However, because Q has N choose N/2 possible outputs, it must have at least N choose N/2 possible inputs. That means the internal state of the original algorithm must store at least N choose N/2 states, requiring BigTheta(log N choose N/2), which is greater than constant size.
Therefore the original algorithm, which does have time and space bounds, also can't work correctly if it has constant-size internal state.
[I think this idea can be generalized, but thinking isn't proving.]
Consequences
BigTheta(log(N choose N/2)) is equal to BigTheta(N). Therefore just using a boolean array and ticking values as you encounter them is (probably) space-optimal, and time-optimal too since it takes linear time.