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SQL Server Will Not Start After SP1 or SP2 Update Access denied.

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Hello everyone.

I have a question regarding a SQL install I'm having some troubles with.  I did a base install of SQL 2008 and tried to apply SP1 and the actual process went fine but the service will not start.  It's getting an "access denied" error. I have put the error in bold and underlined it. 

This is the error I'm receiving:

2013-07-23 15:11:45.94 Server      Microsoft SQL Server 2008 (SP1) - 10.0.2531.0 (X64) 
Mar 29 2009 10:11:52 
Copyright (c) 1988-2008 Microsoft Corporation
Enterprise Edition (64-bit) on Windows NT 6.1 <X64> (Build 7601: Service Pack 1) (VM)

2013-07-23 15:11:45.94 Server      (c) 2005 Microsoft Corporation.
2013-07-23 15:11:45.94 Server      All rights reserved.
2013-07-23 15:11:45.94 Server      Server process ID is 4540.
2013-07-23 15:11:45.94 Server      System Manufacturer: 'VMware, Inc.', System Model: 'VMware Virtual Platform'.
2013-07-23 15:11:45.94 Server      Authentication mode is MIXED.
2013-07-23 15:11:45.94 Server      Logging SQL Server messages in file 'C:\Program Files\Microsoft SQL Server\MSSQL10.MSSQLSERVER\MSSQL\Log\ERRORLOG'.
2013-07-23 15:11:45.95 Server      This instance of SQL Server last reported using a process ID of 3148 at 7/23/2013 2:47:14 PM (local) 7/23/2013 7:47:14 PM (UTC). This is an informational message only; no user action is required.
2013-07-23 15:11:45.95 Server      Registry startup parameters: 
-d C:\Program Files\Microsoft SQL Server\MSSQL10.MSSQLSERVER\MSSQL\DATA\master.mdf
-e C:\Program Files\Microsoft SQL Server\MSSQL10.MSSQLSERVER\MSSQL\Log\ERRORLOG
-l C:\Program Files\Microsoft SQL Server\MSSQL10.MSSQLSERVER\MSSQL\DATA\mastlog.ldf
2013-07-23 15:11:45.96 Server      SQL Server is starting at normal priority base (=7). This is an informational message only. No user action is required.
2013-07-23 15:11:45.97 Server      Detected 2 CPUs. This is an informational message; no user action is required.
2013-07-23 15:11:45.97 Server      Using locked pages for buffer pool.
2013-07-23 15:11:46.00 Server      Using dynamic lock allocation.  Initial allocation of 2500 Lock blocks and 5000 Lock Owner blocks per node.  This is an informational message only.  No user action is required.
2013-07-23 15:11:46.03 Server      Node configuration: node 0: CPU mask: 0x0000000000000003 Active CPU mask: 0x0000000000000003. This message provides a description of the NUMA configuration for this computer. This is an informational message only. No user action is required.
2013-07-23 15:11:46.06 spid7s      Starting up database 'master'.
2013-07-23 15:11:46.15 spid7s      9 transactions rolled forward in database 'master' (1). This is an informational message only. No user action is required.
2013-07-23 15:11:46.16 spid7s      0 transactions rolled back in database 'master' (1). This is an informational message only. No user action is required.
2013-07-23 15:11:46.16 spid7s      Recovery is writing a checkpoint in database 'master' (1). This is an informational message only. No user action is required.
2013-07-23 15:11:46.26 spid7s      Resource governor reconfiguration succeeded.
2013-07-23 15:11:46.26 spid7s      SQL Server Audit is starting the audits. This is an informational message. No user action is required.
2013-07-23 15:11:46.26 spid7s      SQL Server Audit has started the audits. This is an informational message. No user action is required.
2013-07-23 15:11:46.26 spid7s      FILESTREAM: effective level = 0, configured level = 0, file system access share name = 'MSSQLSERVER'.
2013-07-23 15:11:46.30 spid7s      SQL Trace ID 1 was started by login "sa".
2013-07-23 15:11:46.30 spid7s      Starting up database 'mssqlsystemresource'.
2013-07-23 15:11:46.33 spid7s      The resource database build version is 10.00.2531. This is an informational message only. No user action is required.
2013-07-23 15:11:46.55 spid7s      Server name is 'UTQA-PUB01'. This is an informational message only. No user action is required.
2013-07-23 15:11:46.63 spid10s     Starting up database 'model'.
2013-07-23 15:11:46.66 Server      A self-generated certificate was successfully loaded for encryption.
2013-07-23 15:11:46.67 Server      Server is listening on [ 'any' <ipv6> 1433].
2013-07-23 15:11:46.67 Server      Server is listening on [ 'any' <ipv4> 1433].
2013-07-23 15:11:46.67 Server      Server local connection provider is ready to accept connection on [ \\.\pipe\SQLLocal\MSSQLSERVER ].
2013-07-23 15:11:46.67 Server      Server local connection provider is ready to accept connection on [ \\.\pipe\sql\query ].
2013-07-23 15:11:46.67 Server      Server is listening on [ ::1 <ipv6> 1434].
2013-07-23 15:11:46.67 Server      Server is listening on [ 127.0.0.1 <ipv4> 1434].
2013-07-23 15:11:46.67 Server      Dedicated admin connection support was established for listening locally on port 1434.
2013-07-23 15:11:46.77 spid13s     A new instance of the full-text filter daemon host process has been successfully started.
2013-07-23 15:11:46.78 spid10s     Clearing tempdb database.
2013-07-23 15:11:46.80 spid13s     Starting up database 'msdb'.
2013-07-23 15:11:46.81 spid14s     Starting up database 'ReportServer'.
2013-07-23 15:11:46.81 spid15s     Starting up database 'ReportServerTempDB'.
2013-07-23 15:11:46.81 Server      The SQL Server Network Interface library successfully registered the Service Principal Name (SPN) [ MSSQLSvc/UTQA-PUB01.rd.as.local ] for the SQL Server service. 
2013-07-23 15:11:46.81 Server      The SQL Server Network Interface library successfully registered the Service Principal Name (SPN) [ MSSQLSvc/UTQA-PUB01.rd.as.local:1433 ] for the SQL Server service. 
2013-07-23 15:11:46.81 Server      SQL Server is now ready for client connections. This is an informational message; no user action is required.
2013-07-23 15:11:47.06 spid10s     Starting up database 'tempdb'.
2013-07-23 15:11:47.13 spid14s     The Service Broker protocol transport is disabled or not configured.
2013-07-23 15:11:47.13 spid14s     The Database Mirroring protocol transport is disabled or not configured.
2013-07-23 15:11:47.14 spid14s     Service Broker manager has started.
2013-07-23 15:11:47.20 spid13s     91 transactions rolled forward in database 'msdb' (4). This is an informational message only. No user action is required.
2013-07-23 15:11:47.25 spid13s     0 transactions rolled back in database 'msdb' (4). This is an informational message only. No user action is required.
2013-07-23 15:11:47.25 spid13s     Recovery is writing a checkpoint in database 'msdb' (4). This is an informational message only. No user action is required.
2013-07-23 15:11:48.04 spid7s      Database 'master' is upgrading script 'sqlagent100_msdb_upgrade.sql' from level 0 to level 2.
2013-07-23 15:11:48.04 spid7s      ----------------------------------------
2013-07-23 15:11:48.04 spid7s      Starting execution of PREINSTMSDB100.SQL
2013-07-23 15:11:48.04 spid7s      ----------------------------------------
2013-07-23 15:11:48.41 spid7s      Setting database option COMPATIBILITY_LEVEL to 100 for database msdb.
2013-07-23 15:11:48.47 spid7s      Configuration option 'allow updates' changed from 1 to 1. Run the RECONFIGURE statement to install.
2013-07-23 15:11:48.47 spid7s      Configuration option 'allow updates' changed from 1 to 1. Run the RECONFIGURE statement to install.
2013-07-23 15:11:48.47 spid7s      FILESTREAM: effective level = 0, configured level = 0, file system access share name = 'MSSQLSERVER'.
2013-07-23 15:11:49.74 spid7s      Attempting to load library 'xpstar.dll' into memory. This is an informational message only. No user action is required.
2013-07-23 15:11:49.74 spid7s      Using 'xpstar.dll' version '2007.100.1600' to execute extended stored procedure 'xp_instance_regread'. This is an informational message only; no user action is required.
2013-07-23 15:11:49.79 spid7s      DBCC TRACEOFF 1717, server process ID (SPID) 7. This is an informational message only; no user action is required.
2013-07-23 15:11:49.79 spid7s      DBCC execution completed. If DBCC printed error messages, contact your system administrator.
2013-07-23 15:11:49.80 spid7s       
2013-07-23 15:11:49.80 spid7s      Creating table temp_sysjobschedules
2013-07-23 15:11:49.97 spid7s       
2013-07-23 15:11:49.97 spid7s      Alter table sysdownloadlist...
2013-07-23 15:11:49.97 spid7s       
2013-07-23 15:11:49.97 spid7s      Alter table sysjobhistory...
2013-07-23 15:11:49.98 spid7s       
2013-07-23 15:11:49.98 spid7s      Alter table systargetservers...
2013-07-23 15:11:50.09 spid7s      Configuration option 'allow updates' changed from 1 to 0. Run the RECONFIGURE statement to install.
2013-07-23 15:11:50.09 spid7s      Configuration option 'allow updates' changed from 1 to 0. Run the RECONFIGURE statement to install.
2013-07-23 15:11:50.09 spid7s      FILESTREAM: effective level = 0, configured level = 0, file system access share name = 'MSSQLSERVER'.
2013-07-23 15:11:50.13 spid7s      DMF pre-upgrade steps...
2013-07-23 15:11:50.14 spid7s      DC pre-upgrade steps...
2013-07-23 15:11:50.25 spid7s      Deleting cached auto-generated T-SQL Data Collection packages from msdb...
2013-07-23 15:11:50.25 spid7s      End of DC pre-upgrade steps.
2013-07-23 15:11:50.25 spid7s       
2013-07-23 15:11:50.25 spid7s      ----------------------------------------
2013-07-23 15:11:50.25 spid7s      Execution of PREINSTMSDB100.SQL complete
2013-07-23 15:11:50.25 spid7s      ----------------------------------------
2013-07-23 15:11:50.25 spid7s      ----------------------------------
2013-07-23 15:11:50.25 spid7s      Starting execution of INSTMSDB.SQL
2013-07-23 15:11:50.25 spid7s      ----------------------------------
2013-07-23 15:11:50.31 spid7s      Configuration option 'allow updates' changed from 0 to 1. Run the RECONFIGURE statement to install.
2013-07-23 15:11:50.31 spid7s      Configuration option 'allow updates' changed from 0 to 1. Run the RECONFIGURE statement to install.
2013-07-23 15:11:50.32 spid7s      FILESTREAM: effective level = 0, configured level = 0, file system access share name = 'MSSQLSERVER'.
2013-07-23 15:11:50.40 spid7s      Checking the size of MSDB...
2013-07-23 15:11:50.53 spid7s       
2013-07-23 15:11:50.53 spid7s      Setting database option TRUSTWORTHY to ON for database msdb.
2013-07-23 15:11:50.54 spid7s      Setting database option RECOVERY to SIMPLE for database msdb.
2013-07-23 15:11:50.66 spid7s      Dropping view MSdatatype_mappings...
2013-07-23 15:11:50.66 spid7s      Dropping view sysdatatypemappings...
2013-07-23 15:11:50.66 spid7s      Dropping table MSdbms_datatype_mapping...
2013-07-23 15:11:50.67 spid7s      Dropping table MSdbms_map...
2013-07-23 15:11:50.68 spid7s      Dropping table MSdbms_datatype...
2013-07-23 15:11:50.68 spid7s      Dropping table MSdbms...
2013-07-23 15:11:50.74 spid7s       
2013-07-23 15:11:50.74 spid7s      Creating table syssubsystems...
2013-07-23 15:11:50.75 spid7s       
2013-07-23 15:11:50.75 spid7s      Creating view sysproxyloginsubsystem_view...
2013-07-23 15:11:50.78 spid7s       
2013-07-23 15:11:50.78 spid7s      Creating trigger trig_sysoriginatingservers_delete...
2013-07-23 15:11:50.78 spid7s       
2013-07-23 15:11:50.78 spid7s      Creating view sysoriginatingservers_view...
2013-07-23 15:11:50.79 spid7s       
2013-07-23 15:11:50.79 spid7s      Creating trigger trig_sysjobs_insert_update...
2013-07-23 15:11:50.80 spid7s       
2013-07-23 15:11:50.80 spid7s      Creating view sysjobs_view...
2013-07-23 15:11:50.82 spid7s       
2013-07-23 15:11:50.82 spid7s      Creating trigger trig_sysschedules_insert_update...
2013-07-23 15:11:50.83 spid7s       
2013-07-23 15:11:50.83 spid7s      Creating view sysschedules_localserver_view...
2013-07-23 15:11:50.88 spid7s       
2013-07-23 15:11:50.88 spid7s      Creating view systargetservers_view...
2013-07-23 15:11:50.95 spid7s      Creating table MSdbms
2013-07-23 15:11:50.96 spid7s      Creating table MSdbms_datatype
2013-07-23 15:11:51.26 spid7s      Creating table MSdbms_map
2013-07-23 15:11:51.27 spid7s      Creating table MSdbms_datatype_mapping
2013-07-23 15:11:51.28 spid7s      Definining default datatype mappings
2013-07-23 15:11:51.29 spid7s      Creating datatype mappings for MSSQLSERVER to ORACLE8
2013-07-23 15:11:51.48 spid7s      Creating datatype mappings for MSSQLSERVER to ORACLE9
2013-07-23 15:11:51.55 spid7s      Creating datatype mappings for MSSQLSERVER to ORACLE10
2013-07-23 15:11:51.63 spid7s      Creating datatype mappings for MSSQLSERVER to ORACLE11
2013-07-23 15:11:51.73 spid7s      Creating datatype mappings for MSSQLSERVER to DB2
2013-07-23 15:11:51.82 spid7s      Creating datatype mappings for MSSQLSERVER to SYBASE
2013-07-23 15:11:51.94 spid7s      Creating datatype mappings for ORACLE8 to MSSQLSERVER
2013-07-23 15:11:52.03 spid7s      Creating datatype mappings for ORACLE9 to MSSQLSERVER
2013-07-23 15:11:52.15 spid7s      Creating datatype mappings for ORACLE10 to MSSQLServer
2013-07-23 15:11:52.26 spid7s      Creating datatype mappings for ORACLE11 to MSSQLServer
2013-07-23 15:11:52.39 spid7s      Creating view MSdatatype_mappings
2013-07-23 15:11:52.39 spid7s      Creating view sysdatatypemappings
2013-07-23 15:11:52.41 spid7s       
2013-07-23 15:11:52.41 spid7s      Creating function SQLAGENT_SUSER_SNAME ...
2013-07-23 15:11:52.42 spid7s       
2013-07-23 15:11:52.42 spid7s      Creating function SQLAGENT_SUSER_SID ...
2013-07-23 15:11:52.43 spid7s       
2013-07-23 15:11:52.43 spid7s      Creating procedure SP_SQLAGENT_IS_SRVROLEMEMBER...
2013-07-23 15:11:52.43 spid7s       
2013-07-23 15:11:52.43 spid7s      Creating procedure sp_verify_category_identifiers...
2013-07-23 15:11:52.43 spid7s       
2013-07-23 15:11:52.43 spid7s      Creating function agent_datetime...
2013-07-23 15:11:52.44 spid7s       
2013-07-23 15:11:52.44 spid7s      Creating procedure sp_verify_proxy_identifiers...
2013-07-23 15:11:52.44 spid7s       
2013-07-23 15:11:52.44 spid7s      Creating procedure sp_verify_credential_identifiers...
2013-07-23 15:11:52.45 spid7s       
2013-07-23 15:11:52.45 spid7s      Creating procedure sp_verify_subsystems...
2013-07-23 15:11:52.46 spid7s       
2013-07-23 15:11:52.46 spid7s      Creating procedure sp_verify_subsystem_identifiers...
2013-07-23 15:11:52.46 spid7s       
2013-07-23 15:11:52.46 spid7s      Creating procedure sp_verify_login_identifiers...
2013-07-23 15:11:52.47 spid7s       
2013-07-23 15:11:52.47 spid7s      Creating procedure sp_verify_proxy...
2013-07-23 15:11:52.47 spid7s       
2013-07-23 15:11:52.47 spid7s      Creating procedure sp_add_proxy...
2013-07-23 15:11:52.48 spid7s       
2013-07-23 15:11:52.48 spid7s      Creating procedure sp_delete_proxy...
2013-07-23 15:11:52.48 spid7s       
2013-07-23 15:11:52.48 spid7s      Creating procedure sp_update_proxy...
2013-07-23 15:11:52.49 spid7s       
2013-07-23 15:11:52.49 spid7s      Creating procedure sp_sqlagent_is_member...
2013-07-23 15:11:52.49 spid7s       
2013-07-23 15:11:52.49 spid7s      Creating procedure sp_verify_proxy_permissions...
2013-07-23 15:11:52.50 spid7s       
2013-07-23 15:11:52.50 spid7s      Creating procedure sp_help_proxy...
2013-07-23 15:11:52.51 spid7s       
2013-07-23 15:11:52.51 spid7s      Creating procedure sp_grant_proxy_to_subsystem...
2013-07-23 15:11:52.51 spid7s       
2013-07-23 15:11:52.51 spid7s      Creating procedure sp_grant_login_to_proxy...
2013-07-23 15:11:52.51 spid7s       
2013-07-23 15:11:52.51 spid7s      Creating procedure sp_revoke_login_from_proxy...
2013-07-23 15:11:52.52 spid7s       
2013-07-23 15:11:52.52 spid7s      Creating procedure sp_revoke_proxy_from_subsystem...
2013-07-23 15:11:52.52 spid7s       
2013-07-23 15:11:52.52 spid7s      Creating procedure sp_enum_proxy_for_subsystem...
2013-07-23 15:11:52.53 spid7s       
2013-07-23 15:11:52.53 spid7s      Creating procedure sp_enum_login_for_proxy...
2013-07-23 15:11:52.53 spid7s       
2013-07-23 15:11:52.53 spid7s      Creating procedure sp_sqlagent_get_startup_info...
2013-07-23 15:11:52.55 spid7s       
2013-07-23 15:11:52.55 spid7s      Creating procedure sp_sqlagent_has_server_access...
2013-07-23 15:11:52.58 spid7s       
2013-07-23 15:11:52.58 spid7s      Creating procedure sp_sem_add_message...
2013-07-23 15:11:52.62 spid7s       
2013-07-23 15:11:52.62 spid7s      Creating procedure sp_sem_drop_message...
2013-07-23 15:11:52.63 spid7s       
2013-07-23 15:11:52.63 spid7s      Creating procedure sp_get_message_description...
2013-07-23 15:11:52.64 spid7s       
2013-07-23 15:11:52.64 spid7s      Creating procedure sp_sqlagent_get_perf_counters...
2013-07-23 15:11:52.65 spid7s       
2013-07-23 15:11:52.65 spid7s      Creating procedure sp_sqlagent_notify...
2013-07-23 15:11:52.69 spid7s       
2013-07-23 15:11:52.69 spid7s      Creating procedure sp_is_sqlagent_starting...
2013-07-23 15:11:52.69 spid7s       
2013-07-23 15:11:52.69 spid7s      Creating procedure sp_verify_job_identifiers...
2013-07-23 15:11:52.70 spid7s       
2013-07-23 15:11:52.70 spid7s      Creating procedure sp_verify_schedule_identifiers...
2013-07-23 15:11:52.72 spid7s       
2013-07-23 15:11:52.72 spid7s      Creating procedure sp_verify_jobproc_caller...
2013-07-23 15:11:52.72 spid7s       
2013-07-23 15:11:52.72 spid7s      Creating procedure sp_downloaded_row_limiter...
2013-07-23 15:11:52.73 spid7s       
2013-07-23 15:11:52.73 spid7s      Creating procedure sp_post_msx_operation...
2013-07-23 15:11:52.75 spid7s       
2013-07-23 15:11:52.75 spid7s      Creating procedure sp_verify_performance_condition...
2013-07-23 15:11:52.76 spid7s       
2013-07-23 15:11:52.76 spid7s      Creating procedure sp_verify_job_date...
2013-07-23 15:11:52.77 spid7s       
2013-07-23 15:11:52.77 spid7s      Creating procedure sp_verify_job_time...
2013-07-23 15:11:52.78 spid7s       
2013-07-23 15:11:52.78 spid7s      Creating procedure sp_verify_alert...
2013-07-23 15:11:52.79 spid7s       
2013-07-23 15:11:52.79 spid7s      Creating procedure sp_update_alert...
2013-07-23 15:11:52.80 spid7s       
2013-07-23 15:11:52.80 spid7s      Creating procedure sp_delete_job_references...
2013-07-23 15:11:52.80 spid7s      Error: 10011, Severity: 16, State: 1.
2013-07-23 15:11:52.80 spid7s      Access denied.
2013-07-23 15:11:52.80 spid7s      Error: 917, Severity: 15, State: 1.
2013-07-23 15:11:52.80 spid7s      An upgrade script batch failed to execute for database 'master' due to compilation error. Check the previous error message  for the line which caused compilation to fail.
2013-07-23 15:11:52.80 spid7s      Error: 912, Severity: 21, State: 2.
2013-07-23 15:11:52.80 spid7s      Script level upgrade for database 'master' failed because upgrade step 'sqlagent100_msdb_upgrade.sql' encountered error 917, state 1, severity 15. This is a serious error condition which might interfere with regular operation and the database will be taken offline. If the error happened during upgrade of the 'master' database, it will prevent the entire SQL Server instance from starting. Examine the previous errorlog entries for errors, take the appropriate corrective actions and re-start the database so that the script upgrade steps run to completion.
2013-07-23 15:11:52.81 spid7s      Error: 3417, Severity: 21, State: 3.
2013-07-23 15:11:52.81 spid7s      Cannot recover the master database. SQL Server is unable to run. Restore master from a full backup, repair it, or rebuild it. For more information about how to rebuild the master database, see SQL Server Books Online.
2013-07-23 15:11:52.81 spid7s      SQL Trace was stopped due to server shutdown. Trace ID = '1'. This is an informational message only; no user action is required.
2013-07-23 15:11:52.83 Server      The SQL Server Network Interface library successfully deregistered the Service Principal Name (SPN) [ MSSQLSvc/UTQA-PUB01.rd.as.local ] for the SQL Server service. 
2013-07-23 15:11:52.83 Server      The SQL Server Network Interface library successfully deregistered the Service Principal Name (SPN) [ MSSQLSvc/UTQA-PUB01.rd.as.local:1433 ] for the SQL Server service. 


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