I am getting this error when installing the work flow.
Please ensure that the user(IN.NDS.COM\erpuser1), you logged in to windows is a valid user of Dynamics AX 2009 otherwise it won’t allow you to run the AX setup
As vinay suggested check whether the user has been created for the AX application for “erpuser1” and has got all the admin groups and workflow groups are assigned for the same user. If not so, create the user in the AX application and perform the Setup process. One more thing check your business proxy account is been assigned to this user or not.
For total info u can check the log file as it is showing in the screen shot