Try the below steps to resolve the issue:
1. Open Regedt32.exe
2. Navigate to HKLM\SOFTWARE\SECURE_APP\identity (Replace SECURE_APP with the app name that you have entered from the aspnet_setreg.exe
3. Right click on key identity and select permissions
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4. On the add permissions, click ADD and enter "NETWORK SERVICE"
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5. Select Read Permission
6. If you are using Windows 2000 / IIS 5, you will need to add permission to MACHINE\ASPNET
7. This should resolve the access error.
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