It looks like ASE is having trouble starting the xpserver process, which is used to execute extended stored procedures. I'm not able to search our database of known bugs at the moment, so can't tell if this is a known issue. However, the xpserver is pretty simple - the most likely cause of a problem here would be that the port number assigned to the xpserver was in use by some other process. You might try just changing the port number for the xpserver using the dsedit utility program.
-bret