Make sure you have created the required database tables that CDS requires.
You can use the wM Database Component Configurator application. Then select type = create, version = latest and then select Component.
From the list of Components, select CommonDirectoryServices.
You will need to fill in the appropriate connection info to your wM database so the tables can be created. Therefore, select the RDBMS ypu are using and fill in the required URL values.
The user name / Password are the user that webMethods connection to the database (this is usually a separate DB user).
If your wM database is already created you do not have to select “Create database and database user”. If you are using wM with a real RDBMS I assume you’ve done this already.
Then when the above is done you can restart the IS and you should see that CDS is configured.