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normally you don't run the Capital Manager exe
The Capital Manager is a Service in the background that establishes the connection to the database.
Is your database running?
Try to start the database via the services.
If your database is running use the Capital Launcher to start the application you need (CapitalLaunch.exe)
I sometimes run CapitalManager.exe as you have done to troubleshoot issues and it works fine.
I've only seen that error pop up when there is a corrupt installation. Or when someone has installed a service pack without the base software.