When installing CRM 2011 if you come across the following error:
Then you need to update the domain account that you selected for the CRM services.
To fix this do the following:
1) Logon to the CRM application sevrer.
2) Open the Computer Management tool.
3) Select Local Users and Groups -> Groups
4) Select the "Performance Log Users" group and add your CRM service account.
Thank you. This solved my problem :)