Hi,
Got the above error while trying to install Microsoft Dynamics CRM 2011. The error was because the Windows Server 2008 on which we were trying to install was not running as domain controller.
Running the Active Directory Domain Services Installation Wizard (dcpromo.exe) resolved the issue for us.
Check out this informative video
http://www.youtube.com/watch?v=MK8pkoDs96M
Bye.
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