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!