Insight 1.1.1.4 setup fails at Build and Deploy Reporting Components

Hi
I am trying to setup Insight 1.1.1.4 on Windows 7 with
WAS 8.5
DB2 Server 10.5  - 64 bit
DB2 Server runtime client  10.5 32 bit
CLM 5.0

Following is the database setup ad user privileges

All CLM databases, RICM and RIDW have DBADM priviledge for db2admin, rptuser and etl_user
all these users are created in local OS  and member of Administrator and DB2ADMIN group
On the step one of the Insight setup wizard I have pointed to the DB2 JDBC files from 32bit installation
Tried this setup multiple times and getting error on

Deploying the EAR file to the specified application server...


 
  Log Entry in rrdi_setup.log reads

com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService: Entering deployCognosStep5
07/18/2014 12:43:53,248 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0137I: Loading the model
07/18/2014 12:43:53,298 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0139I: Loaded the model
07/18/2014 12:43:53,917 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0137I: Loading the model
07/18/2014 12:43:53,924 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0139I: Loaded the model
07/18/2014 12:43:54,068 INFO  com.ibm.rational.rrdi.setup.resources.DWConnectionService : CRRRA0116I: No dw connection is found.
07/18/2014 12:43:54,337 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0137I: Loading the model
07/18/2014 12:43:54,341 INFO  com.ibm.rational.rrdi.setup.resources.ResourceService : CRRRA0139I: Loaded the model
07/18/2014 12:43:55,156 INFO  com.ibm.rational.rrdi.setup.biserver.service.WasDeploymentService : CRRRA2038I: Connect to the report server.
07/18/2014 12:44:07,316 INFO  com.ibm.rational.rrdi.setup.contents.impl.SetupContentImpl : CRRRA3006E: Unable to connect to the report server with the specified URL, namespace, and credentials.
07/18/2014 12:44:07,317 ERROR com.ibm.rational.rrdi.setup.biserver.service.WasDeploymentService : Exit WasDeploymentService.executeWasCognosConfigurationStep4 with exception
07/18/2014 12:44:07,317 ERROR com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService : com.ibm.rational.rrdi.setup.biserver.common.RRDIBIServerException: CRRRA2083E: Cannot connect to the report server.
com.ibm.rational.rrdi.setup.biserver.common.RRDIBIServerException: CRRRA2083E: Cannot connect to the report server.
    at com.ibm.rational.rrdi.setup.biserver.service.WasDeploymentService.executeWasCognosConfigurationStep4(WasDeploymentService.java:1039)
    at com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService.deployCognosStep5(DeployCognosToWASStepService.java:741)
    at com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService.handleActions(DeployCognosToWASStepService.java:212)
    at com.ibm.rational.rrdi.setup.steps.AbstractStepService.doPost(AbstractStepService.java:222)
    at com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService.doPost(DeployCognosToWASStepService.java:230)
    at com.ibm.team.jfs.app.servlet.AppContainerServlet.dispatchRequest(AppContainerServlet.java:176)
    at com.ibm.team.jfs.app.servlet.AppContainerServlet.service(AppContainerServlet.java:281)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
    at org.eclipse.equinox.http.servlet.internal.ServletRegistration.service(ServletRegistration.java:61)
    at org.eclipse.equinox.http.servlet.internal.ProxyServlet.processAlias(ProxyServlet.java:126)
    at org.eclipse.equinox.http.servlet.internal.ProxyServlet.service(ProxyServlet.java:76)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
    at org.eclipse.equinox.servletbridge.BridgeServlet.service(BridgeServlet.java:120)
    at com.ibm.team.repository.server.servletbridge.JazzServlet.service(JazzServlet.java:68)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
    at org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:305)
    at org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:210)
    at com.ibm.team.repository.server.servletbridge.BridgeFilter.processDelegate(BridgeFilter.java:133)
    at com.ibm.team.repository.server.servletbridge.BridgeFilter.doFilter(BridgeFilter.java:154)
    at org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:243)
    at org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:210)
    at org.apache.catalina.core.StandardWrapperValve.invoke(StandardWrapperValve.java:224)
    at org.apache.catalina.core.StandardContextValve.invoke(StandardContextValve.java:169)
    at org.apache.catalina.authenticator.AuthenticatorBase.invoke(AuthenticatorBase.java:472)
    at org.apache.catalina.core.StandardHostValve.invoke(StandardHostValve.java:168)
    at org.apache.catalina.valves.ErrorReportValve.invoke(ErrorReportValve.java:98)
    at org.apache.catalina.authenticator.SingleSignOn.invoke(SingleSignOn.java:309)
    at org.apache.catalina.core.StandardEngineValve.invoke(StandardEngineValve.java:118)
    at org.apache.catalina.connector.CoyoteAdapter.service(CoyoteAdapter.java:407)
    at org.apache.coyote.http11.AbstractHttp11Processor.process(AbstractHttp11Processor.java:987)
    at org.apache.coyote.AbstractProtocol$AbstractConnectionHandler.process(AbstractProtocol.java:579)
    at org.apache.tomcat.util.net.JIoEndpoint$SocketProcessor.run(JIoEndpoint.java:309)
    at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:886)
    at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:908)
    at java.lang.Thread.run(Thread.java:736)
07/18/2014 12:44:07,476 INFO  com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService : com.ibm.rational.rrdi.setup.steps.DeployCognosToWASStepService: Entering deployCognosStep5