Have you checked the connection configurations?
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Can you post the DDL (create table) script, sample data as an insert statement and the expected results please?
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Can you elaborate a little bit further on the problem and the expected output, not entirely clear what you are after?
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Quick suggestions, not certain though

IIRC, there was a connect item for this error for 2008 SP1, had to do with a registry key "ConfigurationState"
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Almost the same as John pointed out but performs better
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CREATE table #TempTable
(
regioncountry varchar(50),
sserver Varchar(50)
)
insert into...

Quick thought, looks like an SSMS error, not an SQL error. Do you have a lot of stuff running/plenty of ram/long time since last restart etc.?
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My bad with the DATEFROMPARTS method, here is a correct version with the integer math
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,DATEDIFF(MONTH,@Birth,DATEFROMPARTS(YEAR(@Service),1,1)) / 12 AS DFPAgeAsOfJanFirst


Again and as always, you...

Just a word of warning, the XML methods posted on this thread so far are naive and ridiculously expensive, at least use the text() function to avoid the XML reconstruction...