The machine-default permission settings do not grant Local Activation permission - because Windows hostname was renamed.

When I re-installed a WebApp on IIS of Windows Server 2003, I found my application return HTTP 401 error.

I also got the below error:

The machine-default permission settings do not grant Local Activation permission for the COM Server application with CLSID {xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx} and APPID {xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx}
to the user IIS APPPOOL\ASP.NET v4.0 SID (S-1-5-82-794271414-2547205055-1060673776-2579641347-304524694) from address LocalHost (Using LRPC). This security permission can be modified using the Component Services administrative tool.

or System error event:
Source: DCOM  Event ID: 10016

I believed there is some problem on the default IIS anonymous user (IUSR and IWAM). I have tried other online suggestions (1, 2, 3) to  to re-create the IUSR or IWAM user.  I have tried to reset the password of both user (reference).

These methods do not help.

Solution:
Finally I discover the server hostname was renamed after IIS installed.  This render the hostname stored inside IIS metadata differs from the OS hostname.

The final solution is to uninstall IIS and install IIS again.  Then IIS config sync with OS.  IUSR and IWAM users re-created with correct name.  Of course, any virtual directories/applications on top of IIS are needed to reinstall and reconfigured.  But this method solved my problem finally.

















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