If you have installed CRM 2011 you will have almost definitely seen this message.

I am doing it with a Windows 2012 server install and I know how to fix the error but finding Local Users and Groups setting is a puzzle in itself.

This issue can be resolved by simply adding your service account to the local group Performance Log Users. To do this follow the steps below (do not close the CRM setup window, leave it as it is on the warnings step) –

1. Open Start -> Administrative Tools -> Computer Management.
2. Navigate to System Tools -> Local Users and Groups -> Groups.
3. Select the group Performance Log Users, right-click on it and select Add to Group...
4. Click on the Add button to select your service account.
5. Click on the OK button when done.

Back in the Dynamics CRM installation window, click on the Back button and then on the Next button. The setup will verify the settings again, and this time you should not see any warnings.

When you open CRM, you will be surprised – the user interface has undergone major enhancements and there are a lot of important new features. But, more about them in later posts…