Are you copying down all additional files that are needed?
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Be careful I've heard that MID has some issues, but I have not seen them myself. Two make sure you get patch 5 that just came out very recently fixes a lot of issues. Also, more specifics like Leff asked about the package, distribution method, sdclient logs etc.... In my tests (we are piloting) I have not seen this error on 8.7 SP3.
D'oh... Yeah, I did indeed miss the obvious. Thanks for kicking me in the right direction ;).
Patch 5 is going out with this.