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WSUS 3.0 SP1 install issues

I have a 2003 server with WSUS 3.0  that we tried to install WSUS 3.0 SP1 on, the install failed and now in the application log there are muiltiple warnings with Event ID 1309 from ASP.NET 2.0, Has anyone encountered this problem before?
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John Gates, CISSP, CDPSE
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Can you post the entire event log message?  Also please find the install log for the service pack and post it.

-D-
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Event Type:      Warning
Event Source:      ASP.NET 2.0.50727.0
Event Category:      Web Event
Event ID:      1309
Date:            2/28/2008
Time:            7:52:29 PM
User:            N/A
Computer:      

The IP address and computer name has been removed from this message
Description:
Event code: 3005 Event message: An unhandled exception has occurred. Event time: 2/28/2008 7:52:29 PM Event time (UTC): 2/29/2008 12:52:29 AM Event ID: 71d34e498c944366a69bf16866bac0e4 Event sequence: 1 Event occurrence: 1 Event detail code: 0  Application information:     Application domain: /LM/W3SVC/415087394/ROOT/ReportingWebService-12-128487199497596855     Trust level:      Application Virtual Path: /ReportingWebService     Application Path: C:\Program Files\Update Services\WebServices\ReportingWebService\     Machine name: Process information:     Process ID: 3792     Process name: w3wp.exe     Account name: NT AUTHORITY\NETWORK SERVICE  Exception information:     Exception type: HttpException     Exception message: Server cannot access application directory 'C:\Program Files\Update Services\WebServices\ReportingWebService\'. The directory does not exist or is not accessible because of security settings.  Request information:     Request URL: http:///ReportingWebService/ReportingWebService.asmx     Request path: /ReportingWebService/ReportingWebService.asmx     User host address: User:      Is authenticated: False     Authentication Type:      Thread account name: NT AUTHORITY\NETWORK SERVICE  Thread information:     Thread ID: 10     Thread account name: NT AUTHORITY\NETWORK SERVICE     Is impersonating: False     Stack trace:    at System.Web.HttpRuntime.EnsureAccessToApplicationDirectory()
   at System.Web.HttpRuntime.HostingInit(HostingEnvironmentFlags hostingFlags)
  Custom event details:
Does this folder exist? C:\Program Files\Update Services\WebServices\ReportingWebService\'

And does the user running the install have permissions to write and read from it?

-D-
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The folder structure goes up to WebServices, Within WebServices there are clientwebservice, ClientWebServiceM5, Root, simpleauthwebservice, but no folder called ReportingWebService. The account that was used for the install has admin rights.
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In IIS there is a virtual directory with that name, we decided to try and reinstall WSUS 3.0 SP1 and got these errors in the install log

2008-03-04 16:20:18  Error     MWUSSetup          InstallWsus: MWUS Installation Failed (Error 0x80070643: Fatal error during installation.)
2008-03-04 16:20:18  Error     MWUSSetup          CInstallDriver::PerformSetup: WSUS installation failed (Error 0x80070643: Fatal error during installation.)
2008-03-04 16:20:18  Error     MWUSSetup          CSetupDriver::LaunchSetup: Setup failed (Error 0x80070643: Fatal error during installation.)

We looked up the error code that states the accounts does not have proper access to the SQL server but it is a admin account that was used to create the original database and we use MSDE instead of SQL.

You need to provide the SA password during the setup.  Does it prompt for SQL credentials?
Ahh I am glad I keep notes ;-)

WSUS Notes:

Make sure the user installing WSUS in Enterprise manager has master as the default database.  If this is not done then access is denied errors will occur upon SQL connection attempt!

You will have to look at the credentials of this user.  Do you have access to a SQL server that has enterprise manager or a SQL install disk?

This is most definitely your problem you will be able to use enterprise manager to set the users database deafult to master!!
-D-
If you absolutely cannot find enterprise manager or you do not have another server hosting it then from the system with MSDE installed you can type from a command prompt:


osql -U sa <enter>

alter login sa with default_database = master

exit

Using enterprise manager you can simply right click on the user and see the default database and if it is other than master it needs to be changed to fix this.
-D-
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Actually after seeing that there was the virtual directory and the directory that it was connected was missing we just renamed the directory the old WSUS database was in and reinstalled WSUS and had create a new database and it worked, thank you for your help.