If you encounter the following error using LiveCycle Output ES there is a very simple solution.
<Warning> <com.adobe.document.XMLFormService> <000000> <$$$/com/adobe/document/xmlform/msg.XFA=Invalid version: The current version of the XFA template model exceeds the capability of Acrobat / Adobe Reader 7.>
This indicates that you have told LiveCycle Output to generate a document that is usable by Reader 7, although your form template you built with LiveCycle Designer specifies that this template is targeted for a later version of Reader in my case the target is Reader 7.0.5.
This can easily occur because LiveCycle Designer’s default target version is 7.0.5, and lots of people specify “7.0 or later” as the target in the process designer in LiveCycle Workspace. Attached is a graphic to help understand the problem and the solution.