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server 2003 with sql 2000 error 0x800423f4

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I have recently changed the switches to managed D-Link switches but the machine is a DC as well.

I have thought of changing SQL to logon as local system but I'm not sure what the implications would be in a domain environment. It was set up to run as domain\sqlsvc when I came here.

domain\sqlsvc is an admin user with "logon as a service" rights on the machine

What else would I have to change if I set SQL to logon as local system?