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When you try to create a new organization or import an organization in Microsoft Dynamics CRM 4.0, you receive the following error message:
Service msftesql was not found on computer ‘Computer _name'.
This problem occurs if you upgrade to Microsoft SQL Server 2008 while Microsoft Dynamics CRM 4.0 is installed.
This problem occurs because of changes in Microsoft SQL Server 2008 Full Text Indexing. Therefore, the Environment Diagnostics Wizard cannot verify that Full Text Indexing is enabled on the SQL Server 2008 server.
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:
949256 Microsoft Dynamics CRM 4.0 updates and hotfixes
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
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 updates
887283 Microsoft Business Solutions CRM software hotfix and update package naming standards