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You may see this error - more than once - when working with your Microsoft Office SharePoint Server (MOSS) 2007 or WSS 3.0 deployment. This often happens after you have applied an upgrade to an existing deployment. You may begin to see a lot of these errors pop up in the SYSTEM event log a:

Event Type:    Error
Event Source:    DCOM
Event Category:    None
Event ID:    10016
Date:        7/1/2008
Time:        9:49:50 AM
User:        NT AUTHORITY\NETWORK SERVICE
Computer:    TCLPRODAPP1
Description:
The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID
{61738644-F196-11D0-9953-00C04FD919C1}
to the user NT AUTHORITY\NETWORK SERVICE SID (S-1-5-20).  This security permission can be modified using the Component Services administrative tool

The error CLSID is followed by a class ID for the DCOM+ application that the service account trying to activate that application does not have permission to activate it.

This is the fix that worked for us.

Copy the GUID following the CLSID above, and Start-->Run-->regedit

Edit-->Find and paste in the GUID. It'll stop at the application entry - and you will want to note the application name on the right side pane. In this example, it was the IIS WAMREG admin service that popped up.

Now, open Component Services (typically, from the server - Start-->Administrative Tools-->Component Services), expand Component Services, Computers, My Computer, DCOM Config. Scroll down and find the application (IIS WAMREG in this case). Right-Click-->Properties and select the Security tab. You'll have some options here - the first block Launch and Activation Permissions - ensure that the Customize radio button is selected, and click Edit. Now, add your service account - giving it launch and activate - and in some requirements - remote launch / activate permission.

Restart IIS.