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1. Backup the current kwad.dll on one of the machines seeing the issue
2. Stop the server
3. copy kwad.dll from a working server to the bad one
4. Start the server and monitor to see if the error is resolved.
My assumption based on the description is that you have a bad dll and copying it from the "good" server should solve the issue.
Feedback response number RCAA9K6M7T created by ~Keiko Deskiburli on 05/16/2014