Error - Your Microsoft Dynamics Session is no longer valid. Log off your computer and log on again

Suddenly, we are getting this communication error whenever we try from our client to connect to our DEV AOS box with , which says the below, The only change which we did to our environment recent days were changing the database server from one box to another:

We tried the following options but nothing works:

a. Deleted axapd.aoi file and Restarted AOS on DEV box
b. On the Client, tried clearing the .auc files (Axapta object cache files) from the local user profile, but that too doesn't work
c. Checked if the stored procedures CREATESERVERSESSIONS and CREATEUSERSESSIONS existed in the database and if the service account running AOS Service has enough permissions to execute the sp's
d. Apart from this error, in the event viewer, we were getting bunch of RPC Errors which says "Object Server 01: RPC Error: RPC Exception 1702 occured in sesssion 6", We are on Dynamics AX 2009 SP1 and the latest rollup (Rollup 5), so it should have the RPC Hotfix installed
e. Thought that the stored procedures CREATEUSERSESSIONS were cached on the db server so used the flush commands to clear the cache http://www.sql-server-performance.com/tips/dbcc_commands_p1.aspx, still no luck
f. Installed a new AOS on the box, same issue, we have 3 AOS's on that box and we get the same error when any client connect to the 3 AOS's.
g. Ran SQL Server Profiler, checked SQL Management Log but couldn't detect anything
h. Cleared SYSSYSTEMSEQUENCES table, this table is used by AX when it startups, cleared the sessions from SYSCLIENTSESSIONS table but still no luck

WORKAROUND:

Installed AOS on a different box , left the application files and database as it is, and this works. We have raised a ticket with Microsoft and they are working on this. Would be interested to see what they can come up with.

Will keep this post updated if we come across some breakthrough for the original issue