I'm getting the following Event 7000 error several times per second in my event log:
The Diagnostic Service Host service failed to start due to the following error:
A privilege that the service requires to function properly does not exist in the service account configuration. You may use the Services Microsoft Management Console (MMC) snap-in (services.msc) and the Local Security Settings MMC snap-in (secpol.msc) to view the service configuration and the account configuration.
The machine is running Windows 7 Pro on a Windows Server 2008 domain. It's the only Windows 7 machine on the network so I have no point of comparison to tell if it's an isolated issue with Win7 or a problem with the GPO or other server settings.
The Local Policies tree of the Local Security Policy snap-in is locked on both the workstation and the server, so I can't add or change users under the "Log on as a service" policy.