Can you indicate the exact version of Adobe LiveCycle that is being used? Also, please let me know which application server, database and MS Office versions are being used.
Also, please delete (or achive) your existing application server log files, and restart your application server. Then repeat the steps that lead to this error.
Finally, please post the application server log files.
Deepak, this discussion is more complex than what can be handled over this forum. It might be faster to log a support case against Adobe.
Please turn on debug logging in the application server, reproduce this scenario and submit your application server log files to Adobe Customer Support.