The account specified to run the Microsoft Dynamics CRM application does not have Performance Counter permissions

Error:The account specified to run the Microsoft Dynamics CRM application does not have Performance Counter permissions.

Resolution: On the machine where CRM installation has to be done. Add the domain account to performance log group.

1. Open Start -> Administrative Tools -> Computer Management.
2. Navigate to System Tools -> Local Users and Groups -> Groups.
3. Select the group Performance Log Users, right-click on it and select Add to Group...
4. Click on the Add button to select your service account.
5. Click on the OK button when done.

http://praphullaparab.wordpress.com/2011/03/23/first-look-at-microsoft-dynamics-crm-2011-installation/