When attempting to install the Microsoft Dynamics CRM 2011 Report Authoring Extension on a Windows 8 machine, users may receive the error message below:
"Microsoft Dynamics CRM Report Authoring Extension Setup Failed to find Windows Identity Foundation setup package For additional details see logfile C:\Users\<user>\AppData\Roaming\Microsoft\MSCRM\Logs\BIDSExtensionsSetup.log."
The Windows Identity Foundation 3.5 feature component is not active on the Operating System.
Enable Windows Identity Foundation 3.5:
1. In the Start menu, right-click, and then select All Apps
2. Under the Windows System group, select Control Panel
3. Click on Programs, and then click Programs and Features
4. In the left menu, click Turn Windows features on or off
5. Scroll through the list until Windows Identity Foundation 3.5 is found
In Windows 7 systems, the Microsoft Dynamics CRM 2011 setup program will detect if the Windows Identity Foundation update is installed on the system. If the update is not present, the setup program will automatically install the update during installation. However, if this update is removed after installation, the configuration process will fail with the same error mentioned in this article.
Windows 8 includes Windows Identity Foundation 3.5 out of the box, but is disabled by default.