Error during knowledge base install stating invalid machine or user or database initialization error (NETIQKB72861)

The Knowledge Base installation fails with either an error stating that it the machine or user is invalid or near the end of the installation an error pops up stating that installation incountered an error when attempting to initialize the database.

If you are installing on a domain controller (though this is not recommended) setup will not recognize the correct anonymous user because the machine is a DC and does not have local machine accounts? so you receive an error stating that the machine\user is invalid. 

• You can work around this in IIS Manager:

1. Open Default Web Site properties
2. Go to Directory Security tab
3. Click on Edit button under Authentication and access control
4. Add domain prefix to IUSR_machinename so it's in the form domain\IUSR_machinename
   

Setup also doesn't work with .NET 2.0.  So you need to set the default web site to temporarily use .NET 1.1 and then set back to 2.0 after.

• Goto the Default Web Site properties of IIS
• Switch to ASP.NET tab from version 2.0 or above to version 1.1 and click Apply.

The Knowledge Base installation should now complete successfully.

The Knowledge Base installation cannot find the local anonymous internet user if the machine is a Domain Controller or the IIS server is currently set to use .NET 2.x or above and the installer only supports .NET 1.x

Formerly known as NETIQKB72861