Extract from the original post
"Problem: Inside variation labels, if we click on create hierarchies button nothing happens.
Scenario: I had a publishing site with variation enabled on a specific port. I backed up the site and restore it on a web site hosted on another server. This new website is on different port. Now i created a new variation label inside new site and after creating variation label, when i clicked on Create Hierarchies button nothing got happen. So i started to search the root cause of this problem. I first open the variation link to check the variation settings and here i found that location in the variation home section was pointed to the old server and settings were disabled. Humnnn it meant that this was the root cause of the problem. So question arises that how to change the settings as i wanted to keep all the sites that were earlier created by using variation hierarchies and using GUI there was no option to reset these settings"
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