Error occurs when you run the "Synchronize with CRM" function in the Microsoft Dynamics CRM 2011 client for Outlook

Symptoms

Assume that you use the Microsoft Dynamics CRM 2011 client for Microsoft Office Outlook and that folder redirection is enabled on the client. When you try to track an item or run the Synchronize with CRM function in this situation, you receive an error message that resembles the following:

Cause

This problem occurs because of a limitation in Microsoft SQL Server 2000 Windows CE Edition 3.5 (SQL Server CE 3.5). 

Resolution

NOTE: After Microsoft Dynamics CRM for Outlook Update Rollup 15 has been applied, it will automatically upgrade to SQL CE 4.0. Therefore, the resolution below is only necessary for Update Rollup 14 and lower.

To run Microsoft Dynamics CRM 2011 when the Application Data folder is located on a remote share, follow these steps:

1. Install SQL Server CE 4.0. To do this, visit the following Microsoft website:

   http://www.microsoft.com/download/en/details.aspx?id=17876Notes

   • This step requires elevated permissions.

   • In SQL Server CE 4.0, 64-bit clients do not have to install the 32-bit version.

2. Add the following XML code under the configuration element in the CrmClient{14B13B7A-CA08-40bd-AC60-8C45367E807C}.config file that is located in the Program Files\MSCRM\Client folder:

   <runtime>
    <assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
      <dependentAssembly>
         <assemblyIdentity name="System.Data.SqlServerCe" publicKeyToken="89845dcd8080cc91" culture="neutral" />
         <bindingRedirect oldVersion="3.5.1.0"
         newVersion="4.0.0.0"/>
      </dependentAssembly>
    </assemblyBinding>
   </runtime>

   Notes

   • This step requires elevated permissions.

   • Make sure that you add this code before the </configuration> tag.

3. Additionally, there is a second configuration file that the configuration wizard calls. The file is named Microsoft.Crm.Application.Outlook.ConfigWizard.exe.config, and the file is located in the C:\Program Files\Microsoft Dynamics CRM\Client\ConfigWizard folder:

   <configuration>
     <startup>
       <supportedRuntime version="v4.0.30319" />
     </startup>
     <runtime>
       <assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
         <probing privatePath="..\bin"/>
         <dependentAssembly>
           <assemblyIdentity name="System.Data.SqlServerCe"
           publicKeyToken="89845dcd8080cc91"
           culture="neutral" />
           <bindingRedirect oldVersion="3.5.1.0"
           newVersion="4.0.0.0"/>
         </dependentAssembly>
       </assemblyBinding>
     </runtime>
     <system.net>
       <defaultProxy useDefaultCredentials="true" />
     </system.net>
   </configuration>

4. Delete all SDF files in the %localappdata% and %appdata% folders. For more information, see the "List of databases in CRM" section.
   
   Note SDF files that were created in SQL Server CE 3.5 are incompatible with SQL Server CE 4.0.

Status

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

More Information

For more information about software update terminology, click the following article number to view the article in the Microsoft Knowledge Base:

824684 Description of the standard terminology that is used to describe Microsoft software updatesFor more information about Microsoft Business Solutions CRM software hotfix and update package terminology, click the following article number to view the article in the Microsoft Knowledge Base:

887283 Microsoft Business Solutions CRM software hotfix and update package naming standards