Hi there,
I get quite a lot of results on Google for that error:
http://www.google.com/search?hl=en&s...l=&oq=&gs_rfai=
However, there's not a single, clear solution. It seems to do with security.
Can you go into the Windows Control Panel | Administrative Tools | Services and check which account SQL Server uses?
You may also want to read some of the resutls of the Google search to find out if they apply to you?
Cheers,
Imar