The customer is a doing new install and can not perform wizard #2 when using Active directory.
Customer turned on com.stoneware.service.directoryManager.schema debug and got the following error:
FATAL (04/29) 10:58:32 [com.stoneware.service.DirectoryManager.schema]: Unable to update schema.
javax.naming.NoPermissionException: [LDAP: error code 50 - 00000005: SecErr: DSID-03151E04, problem 4003 (INSUFF_ACCESS_RIGHTS), data 0
This means that
1) The tree root is not the ip number of the schema master server - this has to be set to the schema master during the initial install and then can be changed to another dc later.
2) The user in directory services is not part of the Schema Master group
3) The registry entry is not configured on the schema master server to allow LDAP updates. http://support.microsoft.com/kb/216060