I just spend a long time fighting this problem and wanted to share how I fixed. I was seeing this error on a Win7 standalone system (local profiles, not logging into a domain). I had two profiles on it that worked fine, but if I tried to create a new profile, I would be unable to logon to it and would get the "User Profile Service failed the logon" message. I tried the steps in KB http://support.microsoft.com/kb/947215 but they did not fix the problem. After looking through the event logs, I found the following 1509 error in the Application log: Windows cannot copy file \\?\C:\Users\Default\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm to location \\?\C:\Users\TEMP\AppData\Local\Microsoft\Windows\Temporary Internet Files\SQM\iesqmdata_setup0.sqm. This error may be caused by network problems or insufficient security rights. DETAIL - Access is denied. After binging iesqmdata_setup0.sqm I ran across this article: http://social.technet.microsoft.com/Forums/en-US/w7itprogeneral/thread/e87aafae-c3aa-48df-b188-0ba161fcb9c7 The suggestion there: "I suggest you check the Advanced Security Settings for the C:\Users\Default folder. Ensure you check the box "Replace all child object permission with inheritable permissions from this object"." Fixed this problem for me. I am now able to logon with the newly created accounts just fine. Hopefully this will help others as well!

I would suggest to prepare computer with sysprep with copy profile option that prepares profile correctly. Regards Milos

Hi, Thanks for sharing. We really appreciate your time and efforts. Hope your experience will help other community members facing similar problems. Regards, Leo Huang TechNet Subscriber Support If you are TechNet Subscription user and have any feedback on our support quality, please send your feedback here.Leo Huang TechNet Community Support