Hi Mike,
Thanks for the prompt reply. You are right, the error could not be related to the AD module. I think my deduction came from only checking that box during installation everything else was left as default. I will try to run the install wizard without selecting the AD module and see if it works.
I followed your suggestion and I was able to install AD. For anyone who may experience the same issue I will describe the fix.
1) Installed DNN 4.9 using the wizard using the 2 option. "Standard installation"
2) Once everything was installed I downloaded the Active Directory Provider Module.
3) Before installing the Module, I followed the instructions in this post to take care of the java script error FCKeditor is undefined. While working on the fix, I did have the same problem as Herkeen Phemy after copying the .dll from the 01.00.09 version.
The error was "System.IO.FileLoadException: Could not load file or assembly 'DotNetNuke.FckHtmlEditorProvider' or one of its dependencies. Access is denied." What seem to have fixed the problem was to copy the original .dll back into the bin folder reload the DNN home page then replace the .dll again with the 01.00.09 version and reload the page.
4) With the tool loaded with the workaround .dll I logged in with the host credentials and installed the AD provider without a problem. I used this user guide
I'll let you know how if the installation failed again by excluding the AD module.