%XILINX%\bin\nt64\unwrapped\xlicmgr.exe (2)> has encountered an
error. Xilinx Installation may be incomplete. Process will terminate. For
technical support on this issue, please open a WebCase with this project
attached at http://www.xilinx.com/support.
In ISE 10.1, each executable has a wrapper executable that sets up the environment. The Fatal Error comes from the communication between the wrapper executable and actual xlicmgr executable. The error occurs when looking for the FLEXlm license cache locations.
The error will not occur if a valid license is found.