I have frther investigated and gone through Event Log, Under Application Log I found following Error Message for Dynamcs : Dynamics .NET Business Connector 6.0 cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.
So I have un Installed Business Connector to reinstall it. And when Re installing Business Connector There also it ended up with same error. following is the euprror message from Setup log for business connector setup
Running synchronously.
2014-04-13 11:34:42Z Common Property Install Path set to 'C:\Program Files\Microsoft Dynamics AX\60'.
2014-04-13 11:34:42Z Installation Path retrieved from registry. Value: 'C:\Program Files\Microsoft Dynamics AX\60'
2014-04-13 11:34:42Z Following are messages from the MSI actions log file Microsoft.Dynamics.Setup.Components.InstallLog, which could include earlier messages, (check the date):
2014-04-13 11:34:42Z Installing assembly 'C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll'.
2014-04-13 11:34:42Z Affected parameters are:
2014-04-13 11:34:42Z action = install
2014-04-13 11:34:42Z feature = BusinessConnector
2014-04-13 11:34:42Z installtype = notransaction
2014-04-13 11:34:42Z setuplanguage =
2014-04-13 11:34:42Z assemblypath = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.dll
2014-04-13 11:34:42Z logfile = C:\Program Files\Microsoft Dynamics AX\60\Setup\Microsoft.Dynamics.Setup.Components.InstallLog
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z >>Install: .Net Business Connector Start 4/13/2014 11:34:39 AM
2014-04-13 11:34:42Z >>Install: Starting custom action install code.
2014-04-13 11:34:42Z >>Install: Finishing custom action install code.
2014-04-13 11:34:42Z >>Install: .Net Business Connector End 4/13/2014 11:34:39 AM
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:42Z Component installation task stopped due to an error.
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:42Z Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:42Z System.UnauthorizedAccessException: Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
2014-04-13 11:34:42Z at WUApiLib.UpdateServiceManagerClass.QueryServiceRegistration(String ServiceID)
2014-04-13 11:34:42Z at Microsoft.Dynamics.Setup.MuApiWrapper.IsMachineAlredyOptedIntoMU()
2014-04-13 11:34:42Z at Microsoft.Dynamics.Setup.Support.SetupQueue.MsiInstallationClass.SearchDownloadInstallMicrosoftUpdates(String executionName)
2014-04-13 11:34:42Z at Microsoft.Dynamics.Setup.Support.SetupQueue.ComponentsInstaller.PerformWork()
2014-04-13 11:34:42Z at Microsoft.Dynamics.Setup.Support.SetupQueue.InstallationClass.DoWork(Object sender, DoWorkEventArgs e)
2014-04-13 11:34:42Z at System.ComponentModel.BackgroundWorker.WorkerThreadStart(Object argument)
2014-04-13 11:34:42Z ******************************************************************************************************
2014-04-13 11:34:43Z S260FinishedInfo