This error occurs if the product is installed outside the Exchange forest. Hence even after providing credentials with right privilege, Default Domain Controller policy will fail to configure automatically.
Under such scenario, Default Domain Controller Policy should be configured manually.
- Log on to the domain controller using an administrative account.
- If Windows 2008, open Group Policy Management from Start → Administrative tools.
- If Windows 2003, select Default Domain Controller Security Settings from Start → Administrative tools.
- Navigate to ForestName → Domains → DomainName → Group Policy Objects → Default Domain Controller Policy and right click to Edit it.
- Navigate to Computer Configuration → Policies → Windows Settings → Security Settings → Local Policies.
- Select Audit Policy.
- In the right pane, double click the following policies and enable "Success" and "Failure" settings.
- Audit directory service access
- Audit object access.
- Click Ok.
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