Answer
When installing GFI Directory in certain environments, you need to download and install the version of Active Directory Lightweight Directory Services (AD LDS) or Active Directory Application Mode (ADAM) appropriate to your environment.Active Directory Lightweight Directory Services (AD LDS) is required when installing GFI Directory on Microsoft Windows Vista, Windows 7 or Windows 8 editions.
Note: On Windows Server 2008 and 2012 editions, Active Directory Lightweight Directory Services (AD LDS) is found on the server and can be installed from server manager.
Download link for Windows Vista:
http://www.microsoft.com/en-us/download/details.aspx?id=24770
Download link for Windows7:
http://www.microsoft.com/en-us/download/details.aspx?id=14683
In Windows 8 and later, AD LDS is already installed and can be enabled from Control Panel > Programs and Features > Turn Windows features on or off. Select Enable Active Directory Lightweight Directory Services and click OK.
Note: Only Windows 8/8.1 Professional and Enterprise editions support Active Directory Lightweight Directory Services (AD LDS).
Active Directory Application Mode (ADAM) is required only when installing GFI Directory on Microsoft Windows Server 2003 editions.
Download link for Windows Server 2003 editions:
http://www.microsoft.com/en-us/download/details.aspx?id=4201