http://support.microsoft.com/kb/264001

http://support.microsoft.com/default.aspx/kb/322834

I could get my installation working with below work-around.
1. Start Registry Editor, Regedit.exe.
2. Locate and click the following registry key:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\Netlogon\Parameters
3. Double-click the SiteName value, and then type the site name (as it is
configured in Active Directory) in the Value Data box.NOTE: If the SiteName
value does not exist, follow these steps to create it:
a. On the Edit menu, point to New, and then click String Value.
b. Type SiteName to change the name of the newly created value, and then
press ENTER.
c. Double-click the SiteName value, and then type the site name in the
Value Data box.
4. Quit Registry Editor.
5. Restart the computer.
6. Start the System attendant service. In Computer Management, double-click
Services and Applications, click Services, right-click Microsoft Exchange
System Attendant, and then click Start on the shortcut menu.

Archived from group: microsoft>public>exchange>application>conversion