IIS running as Network Service

Hi,
 I have been asked by a third party support company to change the service logon for IIS from "Local System account" to Network service. When I restart the service it fails with error 1297. I have attached the error message and also the event viewer log relating to that failure.
Can anyone point me in the right direction as to a fix?
I have reverted it back to local service for now but we require the network service to a new application.

Thanks
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SWCGAsked:
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SWCGConnect With a Mentor Author Commented:
Support team decided this wasn't needed in the end. not resolved but not needed
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SWCGAuthor Commented:
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insurevisionCommented:
This exact error is happening for us.  We just updated the server 2008 r2 with the latest Microsoft patches.  Have you up had the same updates on your server?  If the issue is one of the patches, we can try to uninstall.
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SWCGAuthor Commented:
The server is completely up to date patch-wise. I would be happy to try rolling back to see if that sorts it. Do you have any idea what the patch was that might have done it?
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insurevisionCommented:
We are not certain that the patches are the cause of the issue.  We decided to stop spending time troubleshooting that server and move on to a different server.  The server with the problem we are having is a V2P from a Vmware, which was syspreped and had a name change so the issue could be security related.
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Rob StoneCommented:
Does the network service have access to 'Log on as a service' in the server policy?
http://technet.microsoft.com/en-us/library/cc739424(v=ws.10).aspx
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SWCGAuthor Commented:
Hi
"Network Service" is already in the list for that policy. Removed them and re-added the account but still no luck.
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SWCGAuthor Commented:
Question no longer needed
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