Have the security persmission or anything else changed for the Local System Account in Windows Server 2008 versus Windows Server 2003? We have a service, that logs on as the Local System Account, that creates folders on the server (same server as the service is installed). It works perfectly when installed on Windows Server 2003 however when installed in Windows Server 2008 the folders do not get created. It appears as if the Local System Account does not have persmission to create the folders. Any insight that anyone can provide is greatly appreciated.