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The snippet you included here is insufficient to determine the problem. Please review all of the logs contained within the \Logs folder on each HFM application server. The most important is the HsvEventLog.Log file. Use the Win32 event log viewer utility on the server to read this, and perhaps it will reveal the root cause.
Also note, that you may find more than one error some of which are more helpful than others...... If you want to post additional errors, be sure to include all relevant items.
I forgot to add....
From what you posted, I'm guessing the issue is database related. SQL Server as the backend, perhaps?
Was this using the Hyperion sample application files or did you use files from another release? We have seen that an invalid .per file (from another release) will cause similar behavior -- if you used an older .per file I suggest you create a new one in 126.96.36.199 and re-create.
John A. Booth
On 188.8.131.52.xxx today, I confirm John's post is still accurate; Using the Sample applications appropriate to the patch level and release will resolve this issue.