Verify that a supported version of Windows PowerShell is installed. In Windows Server 2008 or Windows Vista, install Windows ...

Verify that a supported version of Windows PowerShell is installed. In Windows Server 2008 or Windows Vista, install Windows PowerShell 2.0 from http://go.microsoft.com/fwlink/?LinkID=198565.

If PowerShell is already installed, verify the version. Click Start > All Programs > Accessories > Windows PowerShell and type Get-Host. Also, verify the execution policy for running scripts. Type Get-ExecutionPolicy -List, and make sure that MachinePolicy and UserPolicy are set to either undefined or RemoteSigned. You can change these policies via Group Policy settings.

If PowerShell is not installed on Windows Server 2008 R2, you can enable it from Server Manager. Click Features > Add Features and select "Windows PowerShell Integrated Scripting Environment (ISE)". In Windows 7, Windows PowerShell is included by default. 

For more information about the versions of PowerShell that are supported with Microsoft Dynamics AX, go to the http://go.microsoft.com/fwlink/?LinkId=619705 page.