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I am posting this here since we occasionally come across this error in ILM/FIM and may be new to ILM implementers if you are not experienced with installing SharePoint. This error occurs because the IIS WAMReg Admin DCOM Server doesn't have Local Activation permissions.

Log Name: System

Source: Microsoft-Windows-DistributedCOM

Date: 9/4/2008 9:14:44 AM

Event ID: 10016

Task Category: None

Level: Error

Keywords: Classic

User: INFO\svc.wssfarm

Computer: ens-ilm01.ENSYNCH.INFO

Description:

The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID

{61738644-F196-11D0-9953-00C04FD919C1}

to the user INFO\svc.wssfarm SID (S-1-5-21-4163591863-704607480-62112183-1115) from address LocalHost (Using LRPC). This security permission can be modified using the Component Services administrative tool.

Add the Local WSS_ADMIN_WPG and WSS_WPG groups and make sure that the Local Activation permission is checked for both. If you are using separate accounts for the Farm and the main Site Collection then the Farm account (svc.wssfarm in my case) will only be in the WSS_ADMIN_WPG group.