Percy Stephansen posted his error log on the CRM help forums . He received the above error while doing a CRM 3.0 to CRM 4.0 upgrade.
I encountered the same error at a client today. The Dianostic wizard passed with "Green across the board" success but upon excecution of the upgrade process there is an immediate error of:
Action Microsoft.CRM.Setup.Server.ExportXmlAction Failed.
Server was unable to process request.
The installation log shows that the proces could not be run.
I did notice that the client software on the 3.0 desktop client was still
trying to access the web site so we eliminated that traffice because it was
causing timeouts to the web service.
But I still received the error that you have below.
But looking at the errorlog we "Guessed" that it was deep in the bone
authentication.
It turned out the the "Installation account" used in the CRM 3.0 deployment
was not being used in the upgrade. That account had be reduced in its
rights.
We gave it the correct access to both the SQL server and the web server and
the install went right through.
If you can't remember what account was used to install 3.0 it should be in
the databases or the first administrative account.
It worked for me today.