Unfortunately setup of AX on the computer outside a domain is prohibited by installer. But there is a trick for doing such thing and works good.
This trick is tested under Windows XP SP2, it does not work on Vista.
For Ax 4.0 Windows XP sp2 is required , for DAX 2009 Windows XP sp3 is required.
Here are steps of the trick (borrowed from AxForum):
1. Change the value of there registry key HKEY_LOCAL_MACHINE\SYSTEM\ControlSet001\Control\ComputerName\ActiveComputerName to any value which does not match the name of your computer
2. Set value of environment variable named “UserDnsDomain” to any other value
3. Run setup.exe
4. Restore values, changed on the steps 1, 2
5. Go to client and server setup in control panel and change computer name to the real name of your computer
In order to install EP,Workflow for DAX 2009 on Windows XP we need to install share point services on Windows XP . Please visit the below link
Install SharePoint on WindowsXP
Enjoy installing DAX ………