I hit the error referenced in the title while attempting to deploy a Lync Server (Release Candidate) front end into a new topology. The topology was successfully published and I was at the step to install the Local Configuration Store. Setup would install the SQL Express instance but ultimately would fail with a logon failure to the xds database. The intended topology was a single Enterprise edition front end with a separate SQL server where the Central Management Store and pool databases would be stored. I tried granting permissions the xds database but nothing would get past this error. Next I tried installing a Standard edition instead but got the same error at the same point during setup. Tried granting permissions to the xds database in the SQL Express instance but nothing would get me past the logon failure. With both the Enterprise and Standard topologies I deleted and recreated the databases multiple times, including uninstalling SQL entirely and reinstalling. Nothing I tried would work.
After some time I noticed that the Lync Monitoring Server bits were still installed from a previous installation, even though this was no longer present in the topology and the server had been “scorched” (Disable-CsComputer –scorch) previously. However, apparently there is some conflict with those bits being installed because as soon as I uninstalled the Monitoring Server I was able to complete all the setup processes successfully. Here is the error:
Import-CSConfiguration -FileName "C:\Users\DMO_AD~1\AppData\Local\Temp\2\CSConfigData-2010_10_25-15_50_07.zip" -Verbose -LocalStore
Cannot open database "xds" requested by the login. The login failed.
Login failed for user 'DOMAIN\administrator'.
Update: I’ve encountered this error in an increasing number of situations. You have to uninstall all the Lync Server components to get past this error.