Thanks Rob .
But this issue occurs with different users in different PCs.
This is a system issue which is described in SAP Note 1670189.
I am very sure that for my system (lets call it PRD), 000 RFC gets picked by default .
Because even the extractors were getting created only in 000.
I tried something - changing the READ RFC entry for the row for 000 (in step 3) to the READ RFC for 010. Guess what ? Extractors got created in 010.
But the login problem persists.
@Divyanshu ,
It doesn't throw an authorization error . It says connection issue.
Thanks,
Shaswat