If you get this error, "Failed to generate a user instance of SQL Server due to failure in retrieving the user's local application data path. Please make sure the user has a local user profile on the computer. The connection will be closed.", try the following steps:
- Run the Internet Information Services (IIS) Manager tool. This tool can be accessed from the Administrative start menu, or by typing "inetmgr" in the Windows Start-->Search text box and selecting the inetmgr tool.
- Expand the machine node on the left pane of the IIS Manager tool.
- Click on the "Application Pools" node so that the application pools display in the main window of the management tool.
- If you are troubleshooting an ASP.NET 2.0, 3.0, or 3.5 application select the "DefaultAppPool" application pool. For ASP.NET 4 select the "ASP.NET v4.0" application pool.
- Right-click on the selected application pool and choose "Advanced Settings".
- In the "Advanced Settings" dialog box find the category called "Process Model". The first row in the category is the "Identity" row.
- Click on the "Identity" row and then click on the small button that shows on the right side of the value cell. The button displays the text "...".
- The "Application Pool Identity" dialog box is displayed. There are two radio buttons in the dialog box. Make sure the first radio button titled "Built-in Account" is selected.
- In the drop-down box below the radio button choose "Network Service" for the identity.
- Click "OK" to close the "Application Pool Identity" dialog box.
- Click "OK" to close the "Advanced Settings" dialog box.
- Changes to the application pool identity have now been saved to IIS 7.5's configuration store.
For more information refer to: http://support.microsoft.com/kb/2002980.
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