Error 268480357 starting an App-V Management Server with dynamic SQL ports

The Application Virtualization Management Server service may fail to start on a Microsoft Application Virtualization 4.5 (App-V 4.5) server with the following error:

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Services
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Windows could not start the Application Virtualization Management Server on Local Computer. For more information, review the System Event Log. If this is a non-Microsoft service, contact the service vendor, and refer to service-specific error code 268480357.
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OK  
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A corresponding event will be recorded in the System Event Log:

Log Name:      System
Source:        Service Control Manager
Event ID:      7024
Task Category: None
Level:         Error
Keywords:      Classic
Description:
The Application Virtualization Management Server service terminated with service-specific error %%268480357.

The Sft-server.log will show entries similar to the following:

[2011-10-18 14:48:33.578] APPVSRV 3020 1512 SW_SQLDataConnection::Open - - - - 2 41494 "Failed to establish a connection to the data source: (Server: sql01\appvirt, Database: APPVIRT).
"
[2011-10-18 14:48:33.578] APPVSRV 3020 1512 SW_SystemDispatcher::init - - - - 1 44901 "System dispatcher initialization error [-1]. System dispatcher startup will stop.
"
[2011-10-18 14:48:33.578] APPVSRV 3020 1512 SW_SystemDispatcher::fini - - - - 0 44952 "Successfully shut down Microsoft System Center Application Virtualization Management Server Version 4.5.2.17140 (3020)
"

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This error may occur if the App-V Management Server was installed to a named SQL instance that is configured to use dynamic ports.  If the Application Virtualization Management Server service is unable to connect to this database at startup, the 268480357 error will be generated.  This can occur if either A) the port was hard-coded during setup and the port number has changed or B) if the SPN is not correctly registered for the service.

There are 2 registry keys under HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\SoftGrid\4.5\Server that control which SQL instance the server connects to:  SQLServerName and SQLServerPort.  SQLServerName will be either the server name or server_name\instance_name, depending on what was chosen during installation.  If SQLServerPort is set to 0, App-V queries the SPN of the SQL server instance to determine the port number to connect to.  If a port was manually entered during setup, SQLServerPort will be hard-coded to use that port number.  In the event that the port number of the SQL instances changes, App-V will not be able to connect to the SQL server.

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To resolve this issue and allow the App-V Management Server service to start, use either of the following methods:

Method 1 - Use static ports

1. Record the value of HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\SoftGrid\4.5\Server\SQLServerPort (
   HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\SoftGrid\4.5\Server\SQLServerPort on a 32-bit server)
2. Log on to the SQL server and open the SQL Server Configuration Manager
3. Navigate to SQL Server Network Configuration\Protocols for  <SQL_instance_name> (where <SQL_instance_name> is your App-V SQL instance).  Double-click on  TCP/IP and then click on the IP Addresses tab
4. For each IP address, remove any value listed for TCP Dynamic Ports.  Change TCP Port to the number you recorded in step 1.  Repeat for all IP addresses.
5. Restart the SQL server instance's service (for example, SQL Server (APPV)).
6. Start the Application Virtualization Management Server service

Method 2 - Continue using dynamic port assignment

1. Verify that the SPNs for the SQL server instance is correctly configured using the steps outlined in this article:  http://blogs.technet.com/b/appv/archive/2009/04/21/app-v-4-5-remote-console-configuration-guide.aspx
2. Open Regedit and navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\SoftGrid\4.5\Server.  Edit SQLServerPort to change the value to 0.  Verify that SQLServerName reflects the instanace name of your SQL server instance in the format <ServerName>\<InstanceName> (for example, SQLServer01\AppV).
3. Double-click C:\Program Files (x86)\Microsoft System Center App Virt Management Server\App Virt Management Service\SftMgmt.udl and change the instance name to match the value entered in step 2.
4. Start the Application Virtualization Management Server service

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