CRM 2011 Error - This workflow cannot be created, updated or published because it was created outside the Microsoft Dynamics CRM Web application. Your organization does not allow this type of workflow.

When you try to import your solution using a program you have written and when you use Powershell you might get this error.

This is because by default, XAML workflows are not enabled in the server. You need to enable them in the server before you can deploy XAML workflows. If you attempt to import without enabling then you will get the above error.

You can find out how to do this in the below URL.

http://msdn.microsoft.com/en-us/library/hh547414.aspx

http://msdn.microsoft.com/en-us/library/8da8c71e-84af-441e-b99b-0b59399f10f6#enable_disable