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Migrating SBS 2003 to SBS 2011 erros with domain policy

OK, I am having issues here with the migration prep tool from 2011, when running on my SBS 2003 server. My errors are as follow:

"Log on as batch job" user right assignment not correct
User accounts are not trusted for delegation

I have followed the steps here to resolve:
http://technet.microsoft.com/en-us/library/gg563788.aspx
***same for both issues according to kb2578426

Also found this, and all policies are linked & active:

http://social.technet.microsoft.com/Forums/en-US/smallbusinessserver/thread/f1e3a841-02f7-45e3-9faf-12cbfc97dd1d/

Yet I still receive the errors. Not sure where to go from here.
Avatar of Jeffrey Kane - TechSoEasy
Jeffrey Kane - TechSoEasy
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Can you please post the log from the Migration Prep Tool?

It should be in this directory:
C:\Documents and Settings\Administrator\Local Settings\Temp\Migration Preparation Logs\

Jeff
TechSoEasy
Also, can you please verify that you have fully completed all of the pre-requisite steps (1 - 7 listed here:  http://technet.microsoft.com/en-us/library/gg563799.aspx) including getting a clean Best Practices scan, clean netdiag and dcdiag?

Jeff
TechSoEasy
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Ok, going to do that. Sorry had a few emergencies.
02/19/2013 13:00:27          Starting task Raise the functional level of the domain and forest
02/19/2013 13:00:27              Starting Task: Raising domain and forrest functional level.
02/19/2013 13:00:27              Domain name is: DC=FYCNET,DC=local
02/19/2013 13:00:27              current domain functional level is: 2
02/19/2013 13:00:27              No need to change.
02/19/2013 13:00:27              current forrest functional level is: 2
02/19/2013 13:00:27              No need to change.
02/19/2013 13:00:27          Task finished successfully
02/19/2013 13:00:27          Starting task Update the schema
02/19/2013 13:00:27              adprep.exe Exists: False
02/19/2013 13:00:27              adprep\adprep.exe Exists: True
02/19/2013 13:00:27              Running C:\Program Files\Windows Small Business Server 2011 Standard Migration Preparation Tool\adprep\adprep32.exe /forestPrep /wssg /silent
02/19/2013 13:00:27              
02/19/2013 13:00:27              Adprep returned: ForestUpdateAlreadyDone(13)
02/19/2013 13:00:27              adprep.exe Exists: False
02/19/2013 13:00:27              adprep\adprep.exe Exists: True
02/19/2013 13:00:27              Running C:\Program Files\Windows Small Business Server 2011 Standard Migration Preparation Tool\adprep\adprep32.exe /domainPrep /gpprep /wssg /silent
02/19/2013 13:00:27              
02/19/2013 13:00:27              Adprep returned: GpoUpdateAlreadyDone(15)
02/19/2013 13:00:27              Adprep has succeeded.
02/19/2013 13:00:27          Task finished successfully
02/19/2013 13:00:27          Starting task Provide licensing support
02/19/2013 13:00:27              Current version: 5.2.3790.131072
02/19/2013 13:00:27              Service pack version = 2
02/19/2013 13:00:27              Running C:\Program Files\Windows Small Business Server 2011 Standard Migration Preparation Tool\KB943494\WindowsServer2003-KB943494-x86-ENU.exe /quiet /norestart
02/19/2013 13:00:33              Package returned: 3010 (0xBC2)
02/19/2013 13:00:33          Task finished successfully
02/19/2013 13:00:33          Starting task Configure Exchange to support migration
02/19/2013 13:00:33              Changing Exchange to be native mode.
02/19/2013 13:00:33              Begin adding Authenticated Users to Pre Windows 20008 Compatible Access group
02/19/2013 13:00:33              AU: LDAP://FYCNET.local/CN=S-1-5-11,CN=ForeignSecurityPrincipals,DC=FYCNET,DC=local
02/19/2013 13:00:33              PreWin2k: LDAP://FYCNET.local/CN=Pre-Windows 2000 Compatible Access,CN=Builtin,DC=FYCNET,DC=local
02/19/2013 13:00:33              AU is already a member, no-op
02/19/2013 13:00:34              auSuccess=True, exchangeSuccess=True
02/19/2013 13:00:34          Task finished successfully
02/19/2013 13:00:36          Starting health scan using MBCA engine..
02/19/2013 13:00:37          Health scan: MBCA model has been imported.
02/19/2013 13:00:38          Health scan: SBSMigrationPrep model is in the mbca model list.
02/19/2013 13:00:38          Health scan: Invoking SBSMigrationPrep model at 02/19/2013 13:00:38
02/19/2013 13:00:53          Health scan: invoke result: True
02/19/2013 13:00:53          Health scan: scan end time: 02/19/2013 13:00:53, duration: 00:00:15.7189512
02/19/2013 13:00:54          Health scan: 2 issues found.
02/19/2013 13:00:54          1: id=1, title=User accounts are not trusted for delegation, description=The Administrators group must be trusted for delegation in default domain controllers policy. Go to http://support.microsoft.com/kb/2578426 for more details., severity=Error
02/19/2013 13:00:54          2: id=2, title="Log on as a batch job" user right assignment is not correct, description=The Default Domain Controller group policy setting "Log on as a batch job" should include BUILTIN\Administrators. Go to http://support.microsoft.com/kb/2578426 for more information., severity=Error
02/19/2013 13:00:54          2 error(s) and 0 warning(s) found during BPA scan
I have completed all the prerequisite steps.
ASKER CERTIFIED SOLUTION
Avatar of Jeffrey Kane - TechSoEasy
Jeffrey Kane - TechSoEasy
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Yes. I added a migration user, which I added to group. The server has been broken many times over the years. I am giving up on it, as even if I do get this resolved, I feel I will be running into many other issues. I appreciate the help. The DC is in a small company, and I am going to manually remove computers from domain, and set up a new domain controller over the weekend. I inherited the network/servers, and have changed the infrastructure quite a bit. Just another step I guess. Thank you.