Thanks for the suggestion. I tried that and this time the procedure actually completed instead of hanging but I don't think the Powershell script is still running properly. It created the log file this time but the content is empty.
Below is the procedure log:
11:07:52 am 14-May-13 Check for AppAssure Success THEN afila
11:07:52 am 14-May-13 Execute Powershell Command (32-bit, Run As System) Success THEN afila
11:07:51 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-4-1 Error - unable to detect output of Powershell command! afila
11:07:51 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-4 Powershell command completed! afila
11:07:50 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-4 Executing 32-bit Powershell command as System: "" dir HKLM:\Software\Appassure\ReplayEPS > c:\kworking\ReplayAgents.txt "" afila
11:07:50 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-3-Then.7 Not sending output to variable. afila
11:07:50 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-2 New command variable is: dir HKLM:\Software\Appassure\ReplayEPS > c:\kworking\ReplayAgents.txt afila
11:07:50 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1-2 Custom commands detected as dir HKLM:\Software\Appassure\ReplayEPS > c:\kworking\ReplayAgents.txt afila
11:07:48 am 14-May-13 Execute Powershell Command (32-bit, Run As System)-1-1 Poweshell is present. afila
11:07:45 am 14-May-13 Run Now - Check for AppAssure Admin afila scheduled procedure Run Now - Check for AppAssure to run at May 14 2013 11:07AM afila