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When ArcGIS Server or ArcIMS are installed on the same server as ArcSDE 64-bit, client services cannot be started.
When the client application and ArcSDE 64-bit are running on the same server, communication takes place through shared memory. Since the clients are 32-bit applications and ArcSDE is a 64-bit application, they cannot use the same shared memory.
Set the variable SDEFORCEXDR to 1 in the client environment. This forces communications to take place through XDR instead of shared memory.
SDEFORCEXDR = 1
setenv SDEFORCEXDR 1