When ArcGIS Server 10.1 is installed and the keycodes file contains version 10.0 features, creating a site in ArcGIS Server Manager fails with the error 'Failed to create the site. The machine does not have a valid license. Please authorize ArcGIS Server by clicking Start > Programs > ArcGIS > Software Authorization'. The Software Authorization Wizard should reject authorization numbers for previous versions to avoid this.
Also refer to technical article 40405:<a href="http://support.esri.com/en/knowledgebase/techarticles/detail/40405" target="_blank">http://support.esri.com/en/knowledgebase/techarticles/detail/40405</a>1) Rename the keycodes file.2) Run the Software Authorization wizard using a Version 10.1 authorization number, ECP file, or PRVC file.3) Open the new keycodes file that was created in the previous step and verify that all features include the version ‘101’. If the contents of the file are not version ‘101’, contact your local Esri Customer Service to acquire the correct 10.1 authorization.4) Navigate to Start > Control Panel > Administrative Tools > Services.5) Restart the ArcGIS Server service.6) Open ArcGIS Server Manager and select Create New Site.