Error in AdaptiveJobServer log

I am seeing the following error in my adaptivejobserver log file.

[Thr 10512] ***LOG Q0I=> NiPGetHostByName: '$SMDAgentHost' not found: getaddrinfo [ninti.c 897]

[Thr 10512] *** ERROR => Main agent failed to be initilized due to incorrect host setting! [ncsmtdatasen 20]

[Thr 10512] *** ERROR => Main agent failed to be initilized due to incorrect host setting! [ncsmtdatasen 20]

What does this error mean and how can I fix it?

I am running BO 4.1 SP6 on Windows Server 2008 against SAP BW back end.

Thanks,

Nick