"Publish learning nets after release" is greyed out.

Hello,

I have created a Learning Nets and a sample course that needs to be uploaded into the Master Repository.

We have made the connections to the Master Repository from Authoring Environment. However, when we try to upload the Learning Nets/Course into the repository, we have 2 issues:

1) During Check-in process, The folders gets created and no other files gets uploaded...

2) We would like to publish the learning nets but the option is greyed out...

Am I missing some config and Where?

We are using IIS as our CMS and not KM.

When I proceed with the "Next" and go to the end, then I get another error:

Another note (if it helps) I am looking at the Publisher database and it is all empty. Another error I get when I start the Authoring environment is below. I am not sure if this is related:

Any help is appreciated...

Thanks...

Harshal