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"An error occurred in Windows Home Server.
Windows Home Server. Setup encountered an error.
Click back to retry. Or, click next to close the Setup Wizard and run setup again. To restart the Setup Wizard, reboot your home server.
If the problems continue, please contact Product Support."
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So what do I do??? Well after googling I find this webpage and lo-and-behold there is the answer...THANKS Tom Ziegmann it worked!!!!
You have to run the wizard. Try restarting the server, install the connector on a home computer, and run the OOBE wizard from there.