This is really more of an academic question than a technical one. I've used PROC FACTOR with dichotomous variables, but the question is, should it be done? I tried to find research on this topic a few years ago, but didn't have any success.
There's no way to answer "should it be done" unless you tell us more about what your data is, and what you are hoping to learn from your data. Usually, I see no point in performing PCA on dichotomous variables. But unless I know more about what you are trying to accomplish, I can't point you in any particular direction.