Does the user under which you start the IPC process have start permissions on Simple Process 2? If you selected integrated auth in your IPC event then it will be the service account of K2 server that needs start permissions on the Process you IPC to. You can also fiddle with the credentials and specify a certain user to start the IPC.

HTH,

I have checked that the User which starts Simple Process 1 has rights to Start Simple Process 2.

The Same user can start Simple Process 2 directly.

I still get the same error; 

Even when I change the authentication mode to "Impersonate Originator" or "Basic"(with correct and incorrect credentails), I still get the same error.

I have attached to the process, and stepped through the WF code generated by the Wizzard, it completes Successfully - not errors, but in the Console mode it throws the error;

From my experience, the BAD header message normally indicates when you are connecting on the wrong port number.  e.g. you are connecting to the K2 workflow server, you connect to port 5555 instead of 5252.  Perhaps you can check the code in the IPC event to see if the port settings are correct.

As for the "Authentication with server failed" error, that seems to a separate error which could be related to your server security setup.

I have managed to get the IPC working. I have determined that during the installation, the Environmental Library - Development Environment - workflow server setting has been configured to port 5555, whereas it should have been 5252.

I have checked the Environmental Library - Production Environment - Workflow Server setting, which correctly was configured to port 5252;

Everything is working now, but worring is that no error was generated, the IPC simply said it completed successfully.