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An error similar to the following is reported in the $SDEHOME/etc/sde_setup.log.
"[Wed Jul 27 14:56:55 2011] ev.SQLstate = 42P01 SDE DBMS Error: -37 ERROR: relation "sde.sde_server_config" does not exist"
There is a check for the existence of an object before the object is created.
This error can be safely ignored.