Hello,
Please check that if the business function '/DSD/ARC' is switched on.
Please switch on the business function '/DSD/ARC'.
You can check following link for the further information regarding the business function '/DSD/ARC':
http://help.sap.com/saphelp_crm700_ehp01/helpdata/en/1d/bfdfb83ebf4eeb890006c08b6d95db/content.htm
Regards,
David