Article ID: 949598 - View products that this article applies to.
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Consider the following scenario. You install Microsoft Dynamics CRM 4.0. The user account that you use to install Microsoft Dynamics CRM 4.0 does not have Create rights in the organizational unit (OU) in the Active Directory directory service. When you run the Environment Diagnostics Wizard, no error occurs. You try to upgrade an existing organization from Microsoft Dynamics CRM 3.0 to Microsoft Dynamics CRM 4.0. In this scenario, you receive the following error message:
Action Microsoft.Crm.Setup.Server.CreateCrmGroupsAction failed. General access denied error.
This problem occurs because the Microsoft Dynamics CRM upgrade code performs a check against the PrivUserGroup group and against the UserGroup Active Directory group. However, the code does not perform a check against the existing OU to verify that you have the rights to create groups in the OU. When you upgrade an organization, the upgrade process has to create new groups for Microsoft Dynamics CRM 4.0. However, you do not have the Create right to create the groups.
This problem is fixed in the latest cumulative update rollup for Microsoft Dynamics CRM 4.0. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
(https://support.microsoft.com/kb/949256/ )Microsoft Dynamics CRM 4.0 updates and hotfixes