When you are trying to install the Microsoft Dynamics AX 2009 Analysis Extensions on a Microsoft SQL Server 2005 Analysis Services Failover Cluster you will run into the following error:

Connecting to SQL Server 2005 Analysis Services on server 'SQLAS' and instance 'MSOLAP$SQLASCLUSTER'.
A connection cannot be made. Ensure that the server is running.
No connection could be made because the target machine actively refused it 127.0.0.1:2383
An error occurred while Setup was connecting to SQL Server Analysis Services instance 'MSOLAP$SQLASCLUSTER' on server 'SQLAS'.

This issue is caused by the Dynamics AX 2009 setup program, that is however not doing much more than executing a script. In other words, when installing the Analysis Extensions the setup program is executing a XMLA script to create the Dynamics AX OLAP database. This XMLA script can also be executed manually, e. g. in Microsoft SQL Server 2005 Management Studio.

The XMLA script file is located on the Dynamics AX 2009 DVD:
support\Analysis Services\Scripts\dynamicsax.xmla

After running the script you need to configure analysis services to connect to the correct OLTP (online transaction processing) database. To do it:
1. Open SQL Server Management Studio (Start > Programs > Microsoft SQL Server > SQL Server Management Studio).
2. In the Connect to Server window, select your Analysis Services instance and enter credentials to log on to the instance, if necessary. Click Connect.
3. In the Object Explorer, expand the Databases > Dynamics AX > Data Sources folder.
4. Right-click Dynamics Database and click Properties. The Data Source Properties - Dynamics Database window is displayed.
5. Select the Connection String row.
6. If you are using Analysis Services 2008, change the data source provider from SQLNCLI.1 to SQLNCLI10.1.
7. Click the expansion button (…) at the end of the Connection String row. The Connection Manager window is displayed.
8. In the Server name field, enter the name of the server that hosts the Microsoft Dynamics AX OLTP database.
9. Select the Use Windows Authentication option.
10. Select the Select or enter a database name option and enter the name of the Microsoft Dynamics AX OLTP database.
11. Click Test Connection to verify that you can connect to the Microsoft Dynamics AX OLTP database.
12. Click OK to close the Connection Manager window.
13. Click OK to close the Data Source Properties - Dynamics Database window.

--author: Anup Shah
--editor: Anup Shah
--date: 11/May/2009