BITS error 0x80070553

[bpeterson]

Hello - after attempting to install the latest round of updates with WSUS, I
had one server that had a logon failure for the services BITS and
WinHTTPautoproxysvc, giving the same error in both failed start attempts:

"Cannot start a new logon session with an ID that is already in use."

The specific numeric error code is as follows:

2147943763 (0x80070553)

Steps taken to resolve issue:
1. Deleted C:\Documents and Settings\All Users\Application
Settings\Microsoft\Network\Downloader. Once BITS service was restarted, it
recreated the folder and the two .dat files within.

2. Using BITSADMIN 2.0, I executing the following command:

bitsadmin /util /repairservice /force

to no avail. The following is the entire output of that command:

C:\Program Files\Support Tools>bitsadmin /util /repairservice /force

BITSADMIN version 2.0 [ 6.6.3790.3959 ]
BITS administration utility.
(C) Copyright 2000-2004 Microsoft Corp.

Attempting to instantiate BITS main interface, IBackgroundCopyManager...
The BITS service will be started if not already running.
Failed to instantiate BITS Manager interface... - 0x80080005
Server execution failed

Detailed error code retrieved - 0x00000553
Cannot start a new logon session with an ID that is already in use.

Analysis of the error code does not suggest a probable cause.
For more information about known issues with BITS, see the KB article Q331716
'List of Known Issues for Background Intelligent Transfer Service (BITS)' in
the Microsoft Knowledge Base at http://go.microsoft.com/fwlink/?linkid=15107.
You can also post BITS-related questions and comments to the
microsoft.public.windows.backgroundtransfer newsgroup.

Force mode was specified -- forcing the deletion and recreation of the BITS
serv
ice.
Deleting the BITS service...
Recreating the BITS service...
Attempt #1 to create the BITS service... Succeeded.
Setting the value of the registry key
HKLM\SYSTEM\CurrentControlSet\Services\BIT
S\Parameters\ServiceDll to %SystemRoot%\System32\qmgr.dll.

Attempting to instantiate BITS main interface, IBackgroundCopyManager...
The BITS service will be started if not already running.
Failed to instantiate BITS Manager interface... - 0x80080005
Server execution failed

Detailed error code retrieved - 0x00000553
Cannot start a new logon session with an ID that is already in use.

Analysis of the error code does not suggest a probable cause.
For more information about known issues with BITS, see the KB article Q331716
'List of Known Issues for Background Intelligent Transfer Service (BITS)' in
the Microsoft Knowledge Base at http://go.microsoft.com/fwlink/?linkid=15107.
You can also post BITS-related questions and comments to the
microsoft.public.windows.backgroundtransfer newsgroup.
ERROR - failed to repair the BITS service. Error code - 0x80070553
Cannot start a new logon session with an ID that is already in use.

Is there anything else I can do to troubleshoot this?