Unable to connect to Business Notifications Server


I have installed business notification server on SERVER1 with Windows Server 2003 R2 SP2.

then I try to access it using Administrative tools=> Business notifications for microsoft dynamics NAV Classic on Client using Windows 7.

I get following Error:

The connection to SERVER1 could not be completed because of an internal server error. Please contact your system administrator.

I verified that the “Notification Service Deployment Manager” and “NS$BusinessNotificationInstance” Services were running on Server. Database was completely accessible by Service Login. IIS Service was running. application directories were created in IIS. Both Firewalls were turned completely off. No errors in Event Viewer Logs.

What could be the problem?

Please help.