1557523 - Database Access Error during new installation or CMS crashing after starting SIA when switching from MySQL to SQL Server based CMS DB

There are 3 different symptoms for this issue :

1. During installation of XIR3.1 on Windows, using MS SQL Cms DB after entering DB information and clicking Next - receive error "Database Access Exception"

2. After succesfully finishing Installation using MySQL as CMS DB, create new SIA pointed to MS SQL Server and try to start it - SIA starts, CMS.exe is running for several minutes then stops. No other servers start.

3. After succesfully finishing Installation using MySQL as CMS DB, use CMSDBCOPY process to copy CMS DB from MySQL to SQL Server. Start SIA.
    Able to connect to Manage servers, but only CMS is running, no other servers can be started.
    Able to login into CMC, but when trying to navigate to Servers page - get Java exception errors.

CMS logs would show lines similar to this :
2011/02/02 19:09:44.744|==| | | 2576|3584| |||||||||||||||(.\InfoObjectRecord.cpp:1320) Object touched on connection 4097 (transaction 0): 756
2011/02/02 19:09:44.744|==| | | 2576|3584| |||||||||||||||(.\DatabaseSubsystem_impl.cpp:5303) Execute of Object 756 failed for some reason. Locking object for later version conflict checking

2011/02/02 19:09:49.869|==| | | 2576|3584| |||||||||||||||(.\SQLServerStatement.cpp:162) Prepare: SQL: UPDATE dbo.CMS_RELATIONS6 SET VERSION = ?, DATA = ? WHERE PARENTID = ? AND CHILDID = ? AND RELATIONSHIPID = ? AND VERSION = ?
2011/02/02 19:09:49.869|==| | | 2576|3584| |||||||||||||||(.\SQLServerStatement.cpp:171) Prepared statement Execute
2011/02/02 19:09:49.869|==| | | 2576|3584| |||||||||||||||(.\DatabaseSubsystem_impl.cpp:208) SQL executed on connection 4097 (transaction 0):
2011/02/02 19:09:49.869|==| | | 2576|3584| |||||||||||||||(.\SQLServerStatement.cpp:186) ExecDirect: SQL: SELECT PARENTID, CHILDID, RELATIONSHIPID, ISMEMBER, VERSION, DATA FROM RELATIONS WITH ( ROWLOCK, UPDLOCK ) WHERE RELATIONSHIPID = 410 AND PARENTID = 727 AND CHILDID = 720
2011/02/02 19:09:49.885|==| | | 2576|3584| |||||||||||||||(.\SQLServerDatabase.cpp:121) SQLServer error found:  ErrorMessage([Microsoft][SQL Server Native Client 10.0][SQL Server]Invalid object name 'RELATIONS'.), ErrorCode(208)

Windows 2008 Server
XI3.1 SP3 (should be the same with any version)
MS SQL 2008 and MS SQL 2005 Servers

CMS crash; RELATIONS; Locking object for later version conflict checking; SQL server; SQL 2008; Database Access Exception , KBA , BI-BIP-DEP-MSQ , Obsolete, use: BI-BIP-DEP , Problem