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A user session cannot be created

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I installed AX2012 R2 CU7 with the demo data downloaded from Microsoft Dynamics AX 2012 Solution Demos on PartnerSource. When I attempted to start the AX client, it threw the following error: A user session on the server could not be created. Try to start the client again. If the problem continues, contact the Microsoft Dynamics AX administrator. I also found the following message in the Event Log: Unable to connect to an Application Object Server. A company name or server name may not be specified...(read more)

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