Configuration error while reading domain directory

Error occured while performing nmConnect : Cannot connect to Node Manager. : Configuration error while reading domain directory

Solution: locate all nm_password.properties in your domains, and enter

username=bla
password=bla

where bla/bla correspond to your nodemanager username - typically weblogic_n - not to WLS username

Also, make sure your nodemanager.domains file contain the entry

domainname=domainpath


see also http://www.javamonamour.org/2011/08/nmconnect-weblogicnodemanagernmexceptio.html