1) Make sure you are installing axapta using account which is having
administrative privelages.
2) Looking at log files it seems that you need to change system policy
as it clearly shows in log --> 'This installation is forbidden by
system policy.'
3) If you can post your OS version would be helpful.

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--- In Axapta-Knowledge-Village@yahoogroups.com, suneel babu
<[EMAIL PROTECTED]> wrote:
>
> HI.,
>    when i try to install Ax 4.0, i faced some errors, especially
when i install AOS server the below errors occurred. if any one
familiar with this errors, pls send reply.
>
>
>
**********************DynamicsSetupLog.Txt***********************************************===
Setting up Object server ===Adding account OCIMUMBIO\OBS-DYNAMICS-AP$
as a login in SQL ServerSQL Version: 9.00.1399.06The localized name
for the BUILTIN\USERS account has been identified as
BUILTIN\Users.Launching MSI:  /i
"H:\Msi\ObjectServer\ObjectServer.msi" /qb-! /l*v "C:\Documents and
Settings\All Users\Application Data\Microsoft\Dynamics AX\Dynamics AX
Setup Logs\2008-10-16 11-45-16\ObjectServer Log.txt" DIRECTEXECUTE=1
TRANSFORMS=:Instance01 MSINEWINSTANCE=1 INSTALLDIR="C:\Program
Files\Microsoft Dynamics AX\40\Server" AOSSTART="1" AOSACCOUNT="NT
AUTHORITY\NETWORK SERVICE" AOSACCOUNTPASSWORD=""
LOCALIZED_BUILTIN_USERS="BUILTIN\Users"Error during setup of Object
server.For more information see: C:\Documents and Settings\All
Users\Application Data\Microsoft\Dynamics AX\Dynamics AX Setup
Logs\2008-10-16 11-45-16\ObjectServer Log.txt
> ===Setup was canceled or failed. See previous messages.
> === Setup logging ended: 10/16/2008 11:47:47 AM ErrorLevel/ExitCode:
1 ===
>
**********************DynamicsSetupLog.Txt***********************************************
> 888888888888
>
*************************ObjectServer+log.txt***********************************************
>
> Cont.,
> \MSI (s) (CC:58) [11:47:38:729]: Product not registered: beginning
first-time installMSI (s) (CC:58) [11:47:38:729]: PROPERTY CHANGE:
Adding ProductState property. Its value is '-1'.MSI (s) (CC:58)
[11:47:38:729]: Entering
CMsiConfigurationManager::SetLastUsedSource.MSI (s) (CC:58)
[11:47:38:729]: User policy value 'DisableMedia' is 1MSI (s) (CC:58)
[11:47:38:729]: Warning: rejected media source due to system
policy.MSI (s) (CC:58) [11:47:38:729]: Note: 1: 1708 MSI (s) (CC:58)
[11:47:38:729]: Note: 1: 2729 MSI (s) (CC:58) [11:47:38:729]: Note: 1:
2729 MSI (s) (CC:58) [11:47:38:729]: Product: Microsoft Dynamics AX
4.0 Object Server -- Installation failed.
> MSI (s) (CC:58) [11:47:38:729]: MainEngineThread is returning
1625This installation is forbidden by system policy.  Contact your
system administrator.H:\Msi\ObjectServer\ObjectServer.msiMSI (c)
(E0:9C) [11:47:38:839]: Decrementing counter to disable shutdown. If
counter >= 0, shutdown will be denied.  Counter after decrement: -1MSI
(c) (E0:9C) [11:47:38:839]: MainEngineThread is returning 1625===
Verbose logging stopped: 10/16/2008  11:47:38 ===
>
*************************ObjectServer+log.txt***********************************************
>
**************************************************************************************
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