Business Connector error when installing AX2009 Business Connector and Enterprise Portal

Recently I had a problem when I wanted to install a fresh copy of AX2009 on my development server.

I have the following config on my development server (1,5 gb ram).

Windows Server 2003 R2 SP2

SQL Server 2008 SP1

MOSS 2007 SP1

Every time I got the following error when installing the Business Connector:

Business Connector failed.
Error: Dynamics Adapter CallStaticClassMethod failed.

The Dynamics AX log showed the following information:

Entering method SetBCProxyAccountInAxapta

 The API input parameter is bas\services.

 Entering method GetBusinessConnectorProxyAccount

 The API return value is .

 Leaving method GetBusinessConnectorProxyAccount

 Entering method UpdateBusinessConnectorProxyAccount

 An error has occured while Setup was establishing a connection through Business Connector.

 Error: Dynamics Adapter CallStaticClassMethod failed.

 Leaving method UpdateBusinessConnectorProxyAccount

An error occurred during setup of Role Centers and Enterprise Portal.

This was because AX setup could not assign Business Connector Proxy User (BC Proxy) account.

I also noticed the following error in application event viewer:

Could not obtain Fully Qualified Domain Name for the domain

Similarly when installing Role Centers and Enterprise Portal, the Business Connector Proxy user account cannot be set if the FQDN of your active directory domain is not a superset of the short domain name (NetBIOS name) for example
If the FQDN = ABC.microsoft.com
and the short domain name = ABCCORP
then setting the BCProxy user during EP setup fails. Here is one example of the error you might see in the DynamicsSetupLog.txt file:

Entering function CompareUserAccounts

Entering function ConvertUserAccountToFullyQualifiedDomainNameAccount
Converting user account ABCCORP\BCProxy to a fully qualified domain name
Setup converted the user account ABCCORP\BCProxy to the fully qualified domain name ABC.microsoft.com\BCProxy.
Leaving function ConvertUserAccountToFullyQualifiedDomainNameAccount

Entering function ConvertUserAccountToFullyQualifiedDomainNameAccount
Converting user account ABCCORP\BCProxy to a fully qualified domain name
Setup converted the user account ABCCORP\BCProxy to the fully qualified domain name ABC.microsoft.com\BCProxy.
Leaving function ConvertUserAccountToFullyQualifiedDomainNameAccount
Leaving function CompareUserAccounts
The application pool Sharepoint associated with virtual server SharePoint – 80 is already running under the .NET Business Connector proxy account ABCCORP\BCProxy. Updating the credentials for the application pool

Entering function ConfigureApplicationPool
Setup could not find the application pool object for application pool name Sharepoint using the SharePoint object model.
An error occurred during setup of Role Centers and Enterprise Portal.
Reason: Setup could not find the application pool object for application pool name Sharepoint using the SharePoint object model.

Finally I managed to solve the above by doing the following:

Change the application pool account in IIS used by the EP Site to to be run as the BC proxy account where the account is specified using the FQDN (e.g. I specified it as ABC.microsoft.com\BCProxy).

Ran AX 2009 client and went to Administration -> Setup -> Security -> System service account and blanked out/deleted the business connector proxy account details.

Then re-ran AX 2009 setup again and selected option to install Role Centers and EP and clicked Next. Then in the dialog for specifying the business connector proxy account, I once again specified it using the FQDN of the bc proxy account (e.g. ABC.microsoft.com\BCProxy) in my setup and it allowed the setup to complete.

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