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I have uninstalled v3.2 and reinstalled v3.5. I tested the web sample in VS2005 C# and it was fine. I tested the Delphi version and I got this error:

[Warning] Web.dpr(11): W1026 File not found: 'Web.exe.licenses'
[Error] E1026 File not found: 'Web.exe.licenses'

What is wrong?

Check if "licenses.licx" file is present in your project, this file type is "resource", "bin" directory is created (create it manually if necessary).

The license.licx file is present. I have to take it out of the project list and reinstated it back. Now it works, Thanks.