Configuration of CLM 4.0.4 with SQL Server - Data Warehouse table creation error

The SQL Server used is 2008 R2. This is a new installation. This error is faced while creation of data warehouse for JTS and CCM.

The data warehouse tables could not be created. Try the action again.ID CRJAZ1745E
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CRRTC8030E The creation of the data warehouse failed.
com.ibm.team.repository.common.TeamRepositoryException: ALTER DATABASE [dw] ADD FILE ( NAME = N'VNF_32K', FILENAME = N'C:/Program Files/jazzdw\VNF_32K.ndf' , SIZE = 51200KB , FILEGROWTH = 51200KB ) TO FILEGROUP [VNF_32K] at com.ibm.team.datawarehouse.service.AbstractDataWarehouseDbProvider.internalExecuteSql(AbstractDataWarehouseDbProvider.java:366) at com.ibm.team.datawarehouse.service.AbstractDataWarehouseDbProvider.executeSql(AbstractDataWarehouseDbProvider.java:201) at com.ibm.team.datawarehouse.service.sqlserver.internal.SqlServerDataWarehouseDbProvider.setupDataWarehouseCoreSpace(SqlServerDataWarehouseDbProvider.java:32) at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method) at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:48) at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25) at java.lang.reflect.Method.invoke(Method.java:600) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.invoke(ExportProxyServiceRecord.java:361) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.access$0(ExportProxyServiceRecord.java:347) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord$ExportedServiceInvocationHandler.invoke(ExportProxyServiceRecord.java:56) at com.sun.proxy.$Proxy1455.setupDataWarehouseCoreSpace(Unknown Source) at com.ibm.team.datawarehouse.service.internal.RemoteDatabaseService$1.run(RemoteDatabaseService.java:237) at com.ibm.team.datawarehouse.service.internal.RemoteDatabaseService$6.run(RemoteDatabaseService.java:523) at com.ibm.team.repository.service.internal.rdb.ConnectionPoolService.withCurrentConnection(ConnectionPoolService.java:439) at com.ibm.team.datawarehouse.service.internal.RemoteDatabaseService.write(RemoteDatabaseService.java:485) at com.ibm.team.datawarehouse.service.internal.RemoteDatabaseService.createRemoteSchemas(RemoteDatabaseService.java:225) at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method) at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:48) at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25) at java.lang.reflect.Method.invoke(Method.java:600) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.invoke(ExportProxyServiceRecord.java:361) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.access$0(ExportProxyServiceRecord.java:347) at org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord$ExportedServiceInvocationHandler.invoke(ExportProxyServiceRecord.java:56) at com.sun.proxy.$Proxy44.createRemoteSchemas(Unknown Source) at com.ibm.team.datawarehouse.service.internal.InternalDataWarehouseService$12.run(InternalDataWarehouseService.java:1562) Caused by: com.microsoft.sqlserver.jdbc.SQLServerException: A file activation error occurred. The physical file name 'C:/Program Files/jazzdw\VNF_32K.ndf' may be incorrect. Diagnose and correct additional errors, and retry the operation. at com.microsoft.sqlserver.jdbc.SQLServerException.makeFromDatabaseError(SQLServerException.java:216) at com.microsoft.sqlserver.jdbc.SQLServerStatement.getNextResult(SQLServerStatement.java:1515) at com.microsoft.sqlserver.jdbc.SQLServerStatement.doExecuteStatement(SQLServerStatement.java:792) at com.microsoft.sqlserver.jdbc.SQLServerStatement$StmtExecCmd.doExecute(SQLServerStatement.java:689) at com.microsoft.sqlserver.jdbc.TDSCommand.execute(IOBuffer.java:5696) at com.microsoft.sqlserver.jdbc.SQLServerConnection.executeCommand(SQLServerConnection.java:1715) at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeCommand(SQLServerStatement.java:180) at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeStatement(SQLServerStatement.java:155) at com.microsoft.sqlserver.jdbc.SQLServerStatement.execute(SQLServerStatement.java:662) at com.ibm.team.repository.service.internal.db.jdbcwrappers.stat.StatementStatWrapper.execute(StatementStatWrapper.java:233) at com.ibm.team.repository.service.internal.db.jdbcwrappers.errlog.StatementErrLogWrapper.execute(StatementErrLogWrapper.java:173) at com.ibm.team.repository.service.internal.db.jdbcwrappers.leak.StatementLeakWrapper.execute(StatementLeakWrapper.java:71) at com.ibm.team.datawarehouse.service.AbstractDataWarehouseDbProvider.executeStatement(AbstractDataWarehouseDbProvider.java:225) at com.ibm.team.datawarehouse.service.AbstractDataWarehouseDbProvider.internalExecuteSql(AbstractDataWarehouseDbProvider.java:346) ... 24 more