CRM 2011 – New Organization Error – LocalSystem is not supported as CRM ASP NET Account

Today, I was playing with the CRM 2011 vm From Microsoft.

I wanted to create a new orgnanization, and received this strange error:

 

This error says:

Action Microsoft.Crm.Tools.Admin.GrantCrmDatabaseAccessAction failed. LocalSystem is not supported for CRM ASP Net Account.

Surprisingly, this error yields no results on Google.

Finally, after some quick thinking, I realized the CrmAppPool identity was Local System. I changed it to a domain account, and it worked!

 

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