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Dynamics AX 2012 Reports services extension components installation-failed

While installing the Reporting Services extensions of Dynamics AX 2012 we're experiencing below errors.
An error occurred during setup of Reporting Services extensions.
Reason: A call to the Microsoft Dynamics AX SRSFrameworkService service failed. The target principal name is incorrect.

We're now stuck with the following errors in the "DynamicsSetupLog.txt":

011-12-07 15:25:47Z An error occurred during setup of Reporting Services extensions.
2011-12-07 15:25:47Z Reason: A call to the Microsoft Dynamics AX SRSFrameworkService service failed. The target

principal name is incorrect.
2011-12-07 15:25:47Z Microsoft.Dynamics.AX.Framework.Reporting.Shared.ReportException: A call to the Microsoft

Dynamics AX SRSFrameworkService service failed. The target principal name is incorrect.
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.AX.Framework.Services.Client.ServiceClientHelper.InvokeChannelOperation[TResult,TChannel]

(IServiceClient`1 client, Func`2 operationInvoker, Func`2 exceptionWrapper)
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.AX.Framework.Reporting.Shared.SRSFrameworkServiceProxy.Microsoft.Dynamics.AX.Framework.Reporting

.Shared.IXppSRSFrameworkService.getReportServerConfigurations

(SRSFrameworkServiceGetReportServerConfigurationsRequest request)
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.AX.Framework.Reporting.Shared.SRSFrameworkServiceClient.Microsoft.Dynamics.AX.Framework.Reportin

g.Shared.ISRSFrameworkService.GetReportServerConfigurations(IEnumerable`1 configurationId)
2011-12-07 15:25:47Z    at Microsoft.Dynamics.Setup.ReportsServerInstaller.GetReportServerConfiguration(String

configId)
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.Setup.ReportsServerInstaller.CreateServerConfigurationIfNoneExists(String instanceName)
2011-12-07 15:25:47Z    at Microsoft.Dynamics.Setup.ReportsServerInstaller.InstallConfigurationFiles(String

instanceName, Boolean deploy, String reportDeployScriptFile, String reportDeployLogFile)
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.Setup.Components.ReportingServicesExtensions.InstallConfigurationFiles(String instanceName)
2011-12-07 15:25:47Z    at

Microsoft.Dynamics.Setup.Components.ReportingServicesExtensions.RunReportingSetupManagerDeploy()
2011-12-07 15:25:47Z An error occurred during installation of the Microsoft Dynamics AX Reporting Services

extensions. See the installation log for details.
2011-12-07 15:25:47Z Registering tracing manifest file "C:\Program Files\Microsoft Dynamics AX\60\Server\Common

\TraceProviderCrimson.man".
2011-12-07 15:25:47Z WEvtUtil.exe install-manifest "C:\Users\Administrator\AppData\Local\Temp\2\tmp25B8.tmp"
2011-12-07 15:25:48Z  **** Warning: Publisher {8e410b1f-eb34-4417-be16-478a22c98916} is installed on
2011-12-07 15:25:48Z  the system. Only new values would be added. If you want to update previous
2011-12-07 15:25:48Z  settings, uninstall the manifest first.


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