In search of resolution for my problems, I found this post from another site:
On the affected workstation:
1) Go to Start -> Settings -> Control Panel -> Administrative Tools.
2) Run Â“Local Security PolicyÂ”.
3) Go to Security Settings -> Local Policies -> User Rights Assignments.
4) Double click on Â“Create global objectsÂ”. The correct default settings are Â“AdministratorsÂ”, Â“INTERACTIVEÂ”, and Â“SERVICEÂ”.
5) Double click on ''Impersonate a client after authentication''. The correct default settings are Â“AdministratorsÂ”, Â“ASPNETÂ” (if you have the .NET Framework installed) and Â“SERVICEÂ”.
Even if the settings are set correctly, you may need to Â“refreshÂ” them to fix the problem. To do this, on each policy, remove one of the entries (Â“SERVICEÂ” is probably the best to remove), then press OK to save the changes, and then go back in and add it back in again (click Â“Add User or Group...Â”, type Â“SERVICEÂ” into the white box, and press OK). Then close the Local Security Settings box and reboot. If you are running in a domain with Group Policy, you might want to force a group policy refresh before you reboot by running Â“gpupdate /forceÂ”.
Now the problem is that it's not letting me change Local Security Settings for "Impersonate a client after authentication". I see the setting is not correct according to this post but I can't change it. Anyone has any idea????