You will encounter this error if you are trying to read from the registry. This error specifies that some thing is wrong with the process account when reading the identity information from the registry.
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
4. On the add permissions, click ADD and enter "NETWORK SERVICE"
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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