When doing the SBS 2003 to SBS 2011 migration, make sure you have the latest version of the document and ALWAYS review the document in full.
Microsoft made a recent change in the documentation which included a step designed to get around this issue – it’s documented on Page 17 where you need to give the built in administrators group the right to logon as a batch job. If you have not done this then you will get the error listed in the title of this post.
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