Data recovery fails on the CDM server using method described in CDM administration manual Chapter 5.0. (On the CDM server, browsing to My Backups/<Machine Name>/<Folders> and then right click on folder you want to recover and click on 'Recover to alternate location' fails.)
Resason for such failure could be that hostname of the CDM server not entered correctly in the CDM GUI or not changed from default localhost.
To fix the issue log on to CDM GUI and browse to Machine Groups >Base Group >View Machines >localhost and in the 'Machine Name' field type hostname of the CDM server and click on Save changes.
Tip: To find out host name of the CDM server, Open command prompt on the CDM server and type 'hostname'