Not able to connect HP ALM through QTP connection screen shot attached
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Have you installed the ALM client on the machine where you are trying to connect to ALM from UFT? Regardless, I believe that connecting and downloading ALM components through UFT requires administrative privileges on the client. Have you tried to run UFT as administrator and then connect to ALM?

nils1k
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Did you figure out what the issue was, @sakshi? – nils1k Aug 07 '15 at 09:56