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IIS Application pool identity

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Last Modified: 2016-09-05
Server is Windows 2012 R2 fully up to date

I am trying to set the identity of an app pool to use an AD account (requirement by the software vendor) but IIS keeps telling me I have an incorrect password.  I have verified the password for the account used is correct.

The account has the following rights
Allow login as; service and batch
Deny login; interactive (locally) and via remote desktop

The account is not a member of administrators

Any ideas of where to look or permissions I may need to check?
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