RWSTrados 2011 SR1 Server installation: Fails Pretranslation phase with Error type: Exception of LanguagePlatformException: Object Reference not set to an instance of an object

During the import of files in the Project wizard we encounter an error an any file type (using Trados Defaults as well as custom filters) when the process attempts the pretranslation. We can import files without error IF we do not specify any leverage. So definitely is broken the moment the leverage processs begins. Any other step thereafter equally fails.