%LWAPP-3-CLIENTERRORLOG: Set Transport Address: no more AP manager IP addresses remain
This is your problem. Your WiSM came defaulted with an AP Manager interface, but you might need to create a new one if it's full. How many access points are running on the WiSM?
I want to say that each AP Manager interface can support 50 or 100 access points, but it would be good if someone else could confirm that. Each WiSM "controller" can support 150 access points (300 per WiSM module), but the AP Manager interface itself can only support so many before a new one must be created.
Go to Controller -> Interfaces to see your AP Manager interface. Make sure everything looks good here as well, that the address and everything is configured properly.
If this is your first one, there seems to be something wrong with your AP Manager interface. How did you configure it? Is it on the same subnet as your Management interface? Double-check all configuration on the AP Manager inteface.
Make sure that the IP address in your DNS is for the management interface, not the AP manager interface.
Jeff is right... to add onto this, your management and pa-manager should be on the same subnet and set to native vlan. On the WLC, you need to set the interface to vlan 0 and the dot1q trunk to native vlan (vlan of the management and ap-manager).
To make it simple, place the ap's on the same subnet as the management and ap manager and set a dhcp scope on the subnet if you don't already have one. When the ap gets an ip address, the ap will be able to join the controller without the use of dns or dhcp option. Then after the ap has joined, you can move that ap to a different subnet if you wish.