Possible Cause: LDAP server is down or unreachable. This may happen when nldap is not loaded or ldap is not properly configured. This may also happen if SSL option is selected and schema is already extended.
Action: Check if LDAP is installed and nldap is loaded and try again.If the above check is OK, then most probably this is not a problem; check if schema is already extended. If not try again with cleartext password.
To check if LDAP is actually loaded: Type tcpcon at server console > Select Protocol Information > TCP > TCP Connections. Check if LDAP is listening in port 389 (for Clear Text) or 669 (using SSL). If not, go to ConsoleOne > LDAP Server and check the values therein. Press Refresh NLDAP server now and try again.