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I have the same question (0)As it turns out, it does not matter how much time you have worked with any particular functionality, once it is upgraded, you must read again the manual. On page 34 of the WSInstallAdminGuide, there is a paragraph that states that the Web Services service user must be Delegating user in Tenant Services, and that it must already be a member of the DYNGRP group for each system and company database, prior to installing the Web Services.
It took some time to go through logs to figure this out, since I just went back to the manual to verify if I have missed it.
Also, while going through the Event Viewer, I realized the MSDTC was not setup to allow network DTC access.
I hope this helps someone.