Hi Max / Bhavanam,
I am facing the same issue with both DS 1.2 and 1.3 client. The trace file is similar to the one Bhavanam has indicated. None of the suggested solutions are working, the ones that are described in:
Error "Could not initiate connection. Check the Web Service URL" when using BI Platform connection
OS: Win 7 SP1 32 bit
IE 9.0.8112.16421
JRE 1.7.0_60
The same web service URL is working for QaaWS, Crystal for Enterprise and Analysis for Office clients. It simply fails to work for Design Studio. No error message is shown and the authentication options are grayed out.
Regards,
Saikat