Try to create the application from both HFM Win 32 client and the through the workspace. If the problem still persist.
See to it that you have configured the HFM "Server and Web configuration" properly. tabs, Application server and the Application server cluster. You should not get any error while configuring this. Its always better to restart the machine after you finish up each component configuration/installation.
restart the system, so that all the services gets started in a particular order.