New Install Method Server will not start

We have a development Windchill server running Windchill 9.1 M040. The error below is what you see when you try to access the PTC login page after starting Windchill from the Windchill Shell.

The error we get is the standard H-ttp status 500 he server encountered an internal error
The server manager dialog window shows -start of method server timed out

Below is the log from the method server startup. It shows the following events I think are relevant. Attached is the full log.

wt.services.ManagerException: Could not initialize Auditing service.
2011-01-18 15:53:11,091 INFO [main] wt.method.server.shutdown.services - All managers shut down.
2011-01-18 15:53:11,091 ERROR [main] wt.method.server.startup.services - Unable to start all managers.
2011-01-18 15:53:11,107 FATAL [main] wt.method.server - MethodServerMain abort
wt.services.ManagerException: Unable to start all managers.
Nested exception is: (wt.services.servicesResource/21) wt.services.ManagerException: Unable to start manager: "wt.audit.AuditService" with implementation class: "wt.audit.StandardAuditService"
Nested exception is: wt.services.ManagerException: Could not initialize Auditing service.

So seems like there is a problem with the Auditing service in the method server which is aborting the startup.