Server Service won't start. Gets "Access Denied"

The svchost.exe process exceptioned out at reboot.  The SErver service won't start.  Keeps getting 'Access Denied' when I try to restart it from within Services MMC.  When I look at the permissions on C:\windows\system32\svchost.exe, the System account has full control.
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Any other events in the event logs?
Was the server templated?

Open a cmd window and sc sdshow lanmanserver

should see something like this:

The end letters are users or groups ;;;AU Authenticated users, ;;;SY Local System

To decode see or search engine SDDL:

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JAMI2Author Commented:
Saw this message right after rebuilt the server from backup image.  Since rebooting again, I have not seen the message since.  Maybe just a fluke?
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Windows Server 2003

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