File C:AIFIn{117634FA-CD67-4F58-B37E-1D92BFFAE050}.xml cannot be read because the submitting user could not be determined. The default owner for files created by members of the Administrators group must be set to a specific windows user or a default file owner should be enabled and specified in port configuration.
Solution:
Doing some Google search around this error, got me to this link from our fellow AX Blogger http://pyaarey.wordpress.com/2012/02/29/the-file-system-adapter-is-unable-to-read-the-file-fbtsdemo1aifin1-xml-error/
It helped me to solve the issue so, I'm just putting a screenshot around the post so that people can understand how to troubleshoot.
a. Navigate to System Administration => Setup => Services and Application Integration Framework => Inbound Ports.
b. Click to the Port that you would have created. Click ‘Deactivate’ if it is already activated.
c. For the inbound Xml location click ‘Configure’ button. A pop-up with appear with 2 options and check boxes. You need to check the first option ‘Use default owner for Administrators group:’ and then select user from the drop down list. I am assuming that this user is already added as a System Administrator users list in Dynamics AX 2012. Click Ok to save the changes.