muruli - where did you find any error / log output (i see nothing in dmesg)
I experience the same message when starting ctxusbd as root (as below)
tc@box:~$ sudo /etc/init.d/ctxusbd start
* Starting Citrix USB daemon [fail]
I do see the path /dev/bus/usb and 4 subdirectories (001, 002, 003, 004)
Any help finding how/where to get log info from this would be greatly appreciated